26 June 1991 T.I. (Tax Window, No. 4, p. 8, ¶1317)

Where $100,000 is lent to A and B on a joint and severable basis and the debt later is settled for $60,000 paid by A and B in proportion to their use of the money, s. 80 will apply to A and B only to the extent of their respective shares of the forgiven $40,000.

Where A instead pays B $25,000 to assume A's joint and severable obligations on the $100,000 debt, s. 80 will not apply at the time of the assumption if C does not release A from its obligation.

Where $100,000 is lent to A and B on a joint and severable basis and the debt later is settled for $60,000 paid by A and B in proportion to their use of the money, s. 80 will apply to A and B only to the extent of their respective shares of the forgiven $40,000.

Where A instead pays B $25,000 to assume A's joint and severable obligations on the $100,000 debt, s. 80 will not apply at the time of the assumption if C does not release A from its obligation.