Yes you can cut the wires, tape the still live loose ends individually, and poke the loose ends into a junction box. The box can be put there temporarily until the entire wire segment is removed but the cover of the box has to be accessible at all times. Just be sure the power is off before working on the circuit.

When you cut back a wire to where it branches off (tees off) another wire that is still live, you can cut it off nearly flush and wrap more tape around the cut. Here you do not have to leave a foot or so still branching off for the purpose of being inserted into a box. Usually the joint is soldered so it doesn't come apart. But if the joint does come apart, you have to poke the remaining ends into a junction box before wire nutting them back together.

WHen you cut back the second continuation from what was once a tee joint, the remaining wire, the feed, must be boxed if it has to stay there and stay live.

When you remove the knob and tube feed line leaving the rest of the circuit dead, you do not have to put the downstream loose ends in a box. It would be a good idea to label the loose ends so the next homeowner knows he can simply remove the wires with no further testing. One consequence is that, if you re-energize a dead light or receptacle with a new cable coming from a different direction, you must disconnect all daisy chaining, restringing that, too, with new cable when desired. Otherwise you might energize loose ends in the wall somewhere.

A live knob and tube wire taht tees off somewhere inaccessible can be cut back little by little as other remodeling work progresses. A junction box would be added or moved to each location where the wire ends are cut back to, before the power is turned back on.

 

Thanks .....

I will give it a go.........I appreciate the help....

 

Be careful not to knock off the old insulation . the ole asbestos covering is brittle . If to much is disturbed , you may want to replace more of it .
Watch out for exposed hot wires , once power is back on . I got hit a couple of times from old knob and tube .