### Question
What is the definition of indebtedness of the taxpayer?


### Answer
The definition of **indebtedness of the taxpayer** is as follows 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**

