The Form 1099-C is probably not the whole story. Clients with properties lost to foreclosure, sold in short sales, and who have had debts restructured have complicated tax issues that impact both tax planning and reporting. IRC Sec. 108 says that income from forgiveness of indebtedness is taxable, but it offers a number of exceptions to that rule. This course will deal with handling such transactions, including working with clients who are considering debt settlement options and those for whom the transaction is completed before the CPA becomes involved. Participants will learn how to reduce negative tax outcomes by applying the statutory exceptions to income recognition.
Who Will Benefit
Experienced tax practitioners who advise clients in financial restructuring, or reorganization in bankruptcy, and those who want to expand their services in this specialized area of tax planning and compliance.