IRS publication 544, page 5 defines recourse and non-recourse debt as
based on whether one is "personally liable" for the debt, but it does
not define "personally liable".

Question:
1: What constitutes being personally liable for purposes of determing
recourse vs non-recourse debt, and for purposes of cancellation of
indebtedness income as discussed in above referenced pub. 544?

2: How do I determine my decrease in adjusted basis for a car used 100
% in my schedule C business, where I took only the std. mileage rate
for the 2 years I owned it before it was repossessed.

3: What is the type (ord. vs. capital), and amount of gain or loss
given the above and following?:

I purchased a car in 2000 for 31,000, and owed 30,000 when it was
repossessed in 2002. The finance company is billing me approx. 14,000
for the difference between what I owed them and 16,000 proceeds they
got from selling my repossessed car. I took the std. mileage rate for
the 2 years I owned it. I do not plan to pay the 14,000 deficit. Note:
Please send me a clarification question if you have any doubts about
my question.