Real Estate Loan Workouts: Tax Opportunities and Risks

Strategies to Minimize Tax Liability in Commercial Loan Restructurings

Recording of a 90-minute premium CLE/CPE webinar with Q&A

Conducted on Wednesday, November 18, 2009

Recorded event now available

or call 1-800-926-7926
Course Materials

This seminar will examine the tax opportunities and pitfalls inherent in commercial real estate loan workouts and will provide legal strategies for owners, developers and lenders involved in negotiating workout agreements.


Commercial real estate owners continue to negotiate with lenders to restructure troubled loans. Real estate loan workouts present significant federal income tax opportunities and pitfalls. The tax rules impacting debt restructurings can have surprising economic consequences for unwitting parties.

The American Recovery and Reinvestment Tax Act of 2009 provides some tax relief by allowing commercial property owners who restructure their indebtedness in a way that would otherwise create cancellation of indebtedness (COD) income to defer their income for at least four years.

Counsel for owners and lenders must conduct a comprehensive tax analysis during the workout planning process to minimize the tax impact of a restructuring or other modification to commercial real estate loans.

Listen as our panel of real estate tax attorneys explains the tax opportunities and risks involved when planning a real estate loan workout and provides legal strategies for owners, developers and lenders involved in negotiating workout agreements.



  1. Real estate loan workouts—introduction
  2. Tax considerations
    1. COD income
    2. Qualified real property business indebtedness
    3. Section 108(i)—Election to defer COD income under American Recovery and Reinvestment Act of 2009
    4. Partnerships
    5. Foreign owner/debtor


The panel will review these and other key questions:

  • What are the potential tax consequences of modifying troubled commercial real estate loans?
  • How does the new taxpayer relief in the American Recovery and Reinvestment Act impact real estate loan workouts?
  • What unique tax issues arise when the commercial real estate loan to be modified is held by a partnership?


Mark Stone
Mark Stone

Holland & Knight

He practices in the area of corporate, international, and real estate taxation. He has represented complex real estate...  |  Read More

Michael Hirschfeld
Michael Hirschfeld


He is a tax partner who focuses his practice on corporate, international, leasing, real estate, workouts, and...  |  Read More

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Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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