- NY Credits : 2.0
- TX Credits : 2.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 2.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 2.0
The federal tax code imposes an income tax on all income, from whatever source derived. This explicitly includes debt forgiveness. This course explores the reasons that cancellation of debt is included in income and describes the various exclusions from recognizing such income for tax purposes. The specific consequences of excluding cancellation of debt income are described, as well as the special rules related to debt forgiveness in the context of S corporations and partnerships. Finally, this course identifies the reporting obligations that arise from the cancellation of debt.
This course is most beneficial to professionals new to debt cancellation who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to this subject.
Upon successful completion of this course, the user should be able to:
recognize the reasons debt forgiveness is included in income, and
recognize the types of debt forgiveness that does not result in COD income.