There are several types of discharges of indebtedness that can result in the exclusion of the amount from gross income. These include discharges of qualified real property business indebtedness, qualified farm indebtedness, and insolvency discharges. Discharges of qualified real property business indebtedness and qualified farm indebtedness are excluded from gross income if certain conditions are met. Insolvency discharges are excluded from gross income if the taxpayer was insolvent before the discharge of indebtedness. Insolvency is defined as having liabilities exceeding assets.