Periodically, we post commentary on this important topic. Frankly, it can literally drive the structure of a workout, and most certainly the timing of it. And as painful as this is to admit (because I’ve really started to like writing on ToughTimes), reading this text might be a little "dry" or even tiresome (although I do try… Continue Reading
Tag Archives: COD
The Insolvency Exclusion to Cancellation of Debt (COD) Income; The Effect of Exempt Assets Under the Carlson Rule (Part 2 of 2)
Posted in 1 Guest Writers, Tax Issues, Tough Times for Lenders, Workout IssuesGuest Writer – Mike Cook, Winstead PC 2nd in a series of 2 postings (Part 1: The Insolvency Exclusion to Cancellation of Debt (COD) Income; The Effect of Exempt Assets Under the Carlson Rule) The Court, having determined that the use of “assets” was ambiguous, pointed out that “[t]he stated purpose of the 1980 Bankruptcy Tax… Continue Reading
The Insolvency Exclusion to Cancellation of Debt (COD) Income; The Effect of Exempt Assets Under the Carlson Rule (Part 1 of 2)
Posted in 1 Guest Writers, Tax Issues, Tough Times for Lenders, Workout IssuesGuest Writer – Mike Cook, Winstead PC Part 1 of 2 During the current economic crisis, debtors will be negotiating workouts with lenders and if the debtors successfully obtain debt relief, they will also be seeking tax relief from the taxation of COD income. The ability to use the broadest exclusion from COD income, the insolvency… Continue Reading