### Question
What does indebtedness of the taxpayer mean?


### Answer
**Indebtedness of the taxpayer** has the following meaning in *26 U.S.C. § 108*:

> any indebtedness—



(A) for which the taxpayer is liable, or



(B) subject to which the taxpayer holds property

#### Citation:
  - *26 U.S.C. § 108*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

