In 2019, Jules borrowed $500,000 to acquire his first home. He has been enjoying living there as his only residence and until Covid hit in 2020, he was employed and able to keep up with the mortgage payments. However he lost his job in early 2021 and for the past several months has not been able to pay his mortgage payments. His home is now worth $1,000,000 and the balance on the home loan is $400,000. Jules has no other debt. He just doesn't have sufficient cash to pay the mortgage. The bank has agreed to restructure the loan so that the monthly payments are reduced and paid over a longer time. The bank also agreed to relieve $50,000 of the overall debt so that the balance of the loan going forward will be $350,000. What is the tax consequence to Jules? Question 10Answer a. There is no tax impact to Jules because this is merely a restructuring of the debt. b. Jules is allowed to exclude the $50,000 relief of debt and he does not need to reduce the basis in his home because his home is not a depreciable asset. c. Jules is allowed to exclude the $50,000