article_search

Search Articles:

Product Finder

Search for products that match of these criteria:

 + Add row
Price:

Not quite a “gift” – The tax 411 on COD

$225.00

SKU: REAjf102. Category: .

Description

Abstract: As the fallout from the financial tremors of 2008 continues, many real estate owners are engaging in transactions involving the cancellation of debt (COD). Although COD can be complicated enough with only the borrower and lender involved, Uncle Sam’s demands for a take can make things even more taxing. Cancellation or forgiveness of debt results in ordinary taxable income to the debtor. This article takes a look at COD transactions, which can result from foreclosures, cash settlements, loan workouts, related-party acquisitions of debt or debt-for-equity swaps. A sidebar discusses exceptions to the immediate recognition of COD income by real estate investors and other debtors.

Additional information

Year

Niche

Newsletter

Issue

Word Count