mer Income Canceled Debts 68. A cash basis taxpayer had a $5,000 loan from his local credit union. He lost his job and was unable to make the payments on this loan. The credit union can- celed the $3,000 remaining amount due on the loan. The taxpayer did not file bankruptcy nor was he insolvent. How much is included in his income as a result of this occurrence? A. $5,000 B. $3,000 C. $0 D. $8,000 9. A taxpayer owns a business and reports her income d a sole proprietor on a Schedule C. One