For a reduction in the amount of a debt to be treated as a purchase price adjustment under section 108(e)(5), the following conditions must be met: (1) the debt must be that of a purchaser of property to the seller which arose out of the purchase of such property, (2) the taxpayer must be solvent and not in bankruptcy when the debt reduction occurs, and (3) except for section 108*e)*5), the debt reduction would otherwise have resulted in discharge of indebtedness income
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For a reduction in the amount of a debt to be treated as a purchase price adjustment under section 108(e)(5), the following conditions must be met: (1) the debt must be that of a purchaser of property to the seller which arose out of the purchase of such property, (2) the taxpayer must be solvent and not in bankruptcy when the debt reduction occurs, and (3) except for section 108*e)*5), the debt reduction would otherwise have resulted in discharge of indebtedness income ( ... )
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