Cancellation of Debt Income: Section 108 Insolvency, Forms 982 and 1099-C, Reducing Tax Attributes

A live 110-minute CPE webinar with interactive Q&A


Thursday, July 29, 2021

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, July 2, 2021

or call 1-800-926-7926

This webinar will guide tax advisers through the rules and reporting requirements for cancellation of debt income (CODI). Our panel of income tax veterans will review common scenarios and explain techniques to delay or eliminate taxation of COD income.

Description

Economic fluctuations trigger waves of debt reduction and forgiveness, followed by CODI under IRC Section 61(a)(12). Usually, taxpayers learn the price paid for debt forgiveness when they receive Form 1099-C. There are many exceptions to CODI taxation. Debt on a principal residence or student loan may not be includable, and the Section 108 insolvency exception is non-elective. These exceptions can allow taxpayers to defer or avoid taxation of CODI.

Even when aware of available relief, tax practitioners must record and report these complex transactions. A debtor could return the property in lieu of foreclosure and file Form 982 to report the reduction of attributes or basis; recourse and nonrecourse debt are treated differently under tax law.

Listen as our panel guides tax advisers through the rules and reporting requirements for CODI. Our panel of income tax veterans will review common scenarios and explain techniques to delay or eliminate taxation of CODI.

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Outline

  1. CODI
  2. Exceptions to taxation
    1. Section 108 insolvency
    2. Qualified personal residence
    3. Student loan debt
    4. Qualified real property indebtedness
    5. Other exceptions
  3. Partnerships and S corporations
  4. Reducing tax attributes
  5. Transfers, sales, and exchanges
  6. Form 1099-C
  7. Form 982
  8. Best practices

Benefits

The panel will review these and other critical issues:

  • The ordering rules for reduction of tax attributes
  • What is the exception related to student loans?
  • How is insolvency determined for partnerships and S corporations?
  • How is Form 982 prepared for qualified personal residence debt relief?
  • What considerations are there when real property is relinquished to satisfy a debt?

Faculty

Finkel, Robert
Robert M. Finkel

Partner
Moritt Hock & Hamroff

Mr. Finkel has more than 30 years experience as a tax and business lawyer, with his practice focused on the areas of...  |  Read More

Additional faculty
to be announced.
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Early Discount (through 07/02/21)

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