$13.$ Taxpayer T $("$T$")$ purchased T$\text{'}$s primary residence for $$1,200,000.$ T took a mortgage from Bank $("$B$")$ in the amount of $$1,000,000.$ When the fair market value of the residence decreased to $$700,000,$ and T still had $$900\mathrm{.}000$ outstanding on the mortgage, T negotiated with B to "walk away" from the mortgage $($meaning the bank took the property and cancelled the $$900,000$ debt owned by T$)$ because recognize s$200\mathrm{.}000$ income.

T was having financial difficulty paying. T must

$$True

$$False