Description
Provide solutions to better anticipate the tax consequences related to debt forgiveness or refinancing transactions.
Businesses often begin to face financial difficulties, either due to a change in the status of an industry or unforeseen downturns in the business. These downturns often require the refinancing of existing debt in order to allow for adequate debt service. Having a firm understanding of the tax rules around debt forgiveness and bankruptcy allows clients and their advisors to better anticipate the consequences of these refinancing transactions and prepare for the impact. This topic provides tools to identify the transactions which result in a debt modification for tax purposes and provides solutions to better anticipate the tax consequences related to debt forgiveness or refinancing transactions.
Date: 2023-04-12 Start Time: 1:00 PM ET End Time: 2:40 PM ET
Learning Objectives
* You will be able to identify the business exigencies that create a need to refinance existing debt.
* You will be able to describe the transactions which give rise to debt forgiveness.
* You will be able to discuss how to quantify the amount of any debt forgiveness income.
* You will be able to review the exclusions to income recognition in the case of bankruptcy or insolvency.