Home | Business News | Browse by Publication | T | The Tax Adviser

Dispositions of property in satisfaction of debt.

Publication: The Tax Adviser
Publication Date: 01-OCT-04 		Format: Online - approximately 791 words
Delivery: Immediate Online Access

Article Excerpt
A taxpayer considering transferring assets to settle a debt should carefully analyze the tax consequences before entering into such a transfer. A combination of gain from the deemed sale of the property and cancellation of debt (COD) income may result. Under certain circumstances, the taxpayer may qualify for tax favored treatment, such as deferral or elimination of the COD income.

Background

According to Rev. Rul. 90-16, a taxpayer is treated as having sold or exchanged property when he or she transfers property to a creditor in discharge of debt, regardless of whether the transfer is a voluntary conveyance by deed or an involuntary foreclosure. The debt's character (i.e., recourse or nonrecourse) determines the transfer's tax consequences.

Recourse...

Access Full Article, Compliments of Goliath

Read the FULL article now - Try Goliath Business News - FREE!   
You can view this article PLUS...

  • Over 5 million business articles
  • Hundreds of the most trusted magazines, newswires, and journals (see list)
  • Premium business information that is timely and relevant
  • Unlimited Access

Now for a Limited Time, try Goliath Business News - Free for 3 Days!
Tell Me More   Terms and Conditions

Get Goliath Business News for 1 year - Just $99 (Save 65%)
Tell Me More   Terms and Conditions

Already a subscriber? Log in to view full article



More articles from The Tax Adviser
Sec. 221 final regs. on deducting qualified education loan interest., October 01, 2004
SE tax on LLC distributable income and guaranteed payments.(self emplo..., October 01, 2004
Applying joint estimated tax payments when filing separately., October 01, 2004
Who is a "responsible person"?(under tax law for charitable organizati..., October 01, 2004
Reform or repeal the transfer tax system?, October 01, 2004

Looking for additional articles?
Search our database of over 3 million articles.

Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication name or publication date.

About Goliath
Whether you're looking for sales prospects, competitive information, company analysis or best practices in managing your organization, Goliath can help you meet your business needs.

Our extensive business information databases empower business professionals with both the breadth and depth of credible, authoritative information they need to support their business goals. Whether it be strategic planning, sales prospecting, company research or defining management best practices - Goliath is your leading source for accurate information.