Debt Forgiveness and Section 108

4.4 (351)

Larry Heinkel, LLM

Heinkel Tax Law Group (Tax Problem Solver)

Wednesday, March 10, 2021 | 09:30 AM EST

  • AFSP
  • CPA
  • EA
  • Tax Pros
  • CTEC

1 CPE | 1 CE

$10

Subject Area

Taxes

Webinar Qualifies For

1 CPE credit of Taxes for all CPAs

1 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273)

1 CE credit of Federal Tax for Oregon Tax Preparers

1 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ )

1 CE credit of Federal Tax for Maryland Tax Preparers

1 CE credit of Federal Tax Law for 2021 Annual Filing Season Certificate program( IRS Approved : GEHNZ )

1 General Educational credit for Tax Professionals / Bookkeepers / Accountants

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Course Description

Debtors with cash flow issues who may be unable to pay their debts without accommodations from their lenders face numerous tax issues, and sometimes tax surprises, in the context of debt workouts and bankruptcy. The American economy is hurting and taxpayers are suffering. People are walking away from their homes and credit card debt. When creditors write off a debt, they are required by law to issue the taxpayer/debtor a Form 1099-C, Cancellation of Debt. It is unfortunate that many taxpayers and their representatives are unacquainted with IRC section 108 which excludes many of these discharges or cancellations of debt from taxable income. Receiving a form 1099-C can be a scary thing for taxpayers, who frequently then call their accountants for help. 

This CPE webinar will discuss the various ways or reasons cancellation of debt income can be excluded from income and the consequences of such action including :

1. Issuance of 1099’s

  •  When 1099’s must be issued
  •  When the forgiveness occurs

2. Exclusions from Gross Income

  •  Bankruptcy
  •  Insolvency
  •  Farm Indebtedness
  •  Real Property Indebtedness
  •  Principal Residence

3. School loans, gifts, Deductible Debt

4. Bifurcations

  •  Foreclosures and Short Sales
  •  COD vs capital gain or ordinary income

5. Form 982

6. Reduction of Tax Attributes

Learning Objectives

  • Know how to determine if a taxpayer is insolvent under IRS definitions
  • how to prepare Form 982 and request audit reconsideration
  • Determine actions necessary to negate erroneous information reporting by creditors
  • Identify situations when cancellation of indebtedness income may be excluded under section 108
  • Differentiate situations that would likely result in COD income and eligible for exclusion

Who Should Attend?

  • Enrolled Agent
  • Tax Attorney
  • Tax Practitioners
  • Bookkeeper
  • Accountant
  • CPA - Small Firm
  • CPA - Mid Size Firm
  • Accounting Firm
  • Tax Pros
  • CPA (Industry)
  • Tax Firm
  • Young CPA
  • CPA in Business
  • Entrepreneurial CPA
  • Tax Accountant (Industry)
  • Tax Director (Industry)
  • Senior Accountant
  • Entrepreneurial Accountant
  • Tax Managers
  • Tax Preparer
  • Staff of Accounting Firm

Testimonial

4.4

(351)
52%
33%
12%
2%
0%

VEO

good

MS

Great experience, never any issues with accessing the polling questions.

TA

Excellent course

KD

Very interesting.

CW

great webinar

TW

I really enjoyed this webinar. Very informative.