Final answer:
If a father forgives a daughter's debt to him, she is not required to include such amount in her gross income. The forgiveness of a debt is considered a gift rather than income.
Step-by-step explanation:
If a father forgives a daughter's debt to him, she is not required to include such amount in her gross income. The forgiveness of a debt is not considered taxable income. According to the Internal Revenue Service (IRS), cancelled debts are usually included in the taxpayer's gross income, but there are exceptions, and forgiveness of debt between family members is one of them.
In this case, since the debt was forgiven by a father to his daughter, it is considered a gift rather than income. Gifts from family members are generally not subject to income tax. However, it's important to note that there are certain gift tax rules that apply, so it's always a good idea to consult with a tax professional for specific guidance in individual cases.
In summary, when a father forgives his daughter's debt, she is not required to include the forgiven amount in her gross income, as it is considered a gift rather than taxable income.