Tax Issues Involving Troubled Borrowers (Half-Day Webinar) (Completed)

Date: Wednesday, October 16, 2019
Instructor: Jennifer Kowal
Begin Time:  8:00am Pacific Time
9:00am Mountain Time
10:00am Central Time
11:00am Eastern Time
CPE Credit:  4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC

Troubled borrowers face numerous tax issues, and sometimes tax surprises, in the context of debt workouts and bankruptcy. Matters become more complicated in the context of LLCs, S-corporations and other passthrough entities.

This course addresses the creation and exclusion of cancellation of indebtedness income, consequences of debt workouts on LLC members, tax attribute reduction, original issue discount effects, and the treatment of tax claims in bankruptcy and the taxation of the bankruptcy estate.

Who Should Attend
Tax practitioners at all levels who provide advice and return preparation on debt modifications, debt workouts, and bankruptcies.

Topics Covered

  • Cancellation of indebtedness income
  • Exclusion of cancellation indebtedness income under Section 108
  • Difference in treatment from foreclosures on non-recourse debt secured by property
  • Debt modification rules
  • Tax treatment of claims in bankruptcy and taxation of bankruptcy estate

Learning Objectives

  • Explain the difference in tax treatment between cancellation of recourse debt and foreclosures of property securing non-recourse debt
  • Identify situations when cancellation of indebtedness income may be excluded under Section 108
  • Describe which types of debt modifications are treated as exchanges, and the tax consequences
  • Explain the tax treatment of claims in bankruptcy and the taxation of the bankruptcy estate.

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
Some familiarity with debt instruments, partnership taxation and bankruptcy

Advance Preparation
None

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