IRS provides relief for mezzanine financing workouts

Description

Abstract: The IRS has issued new guidance that will, in certain circumstances, exclude from gross income any discharged debt that’s secured by the ownership interest in a disregarded entity. Revenue Procedure 2014-20 should help taxpayers with mezzanine financing in workouts and similar arrangements. This article takes a look at how the issue arises and how to qualify for the exclusion.