As I’ve commented previously, Congress has been contemplating imposing a stiff tax increase on the "carried interest" or a developer’s "promote" in real estate deals; and a long, long list of commercial real estate industry organizations have been fighting to stop the tax increase. This tax would be a real hardship on commercial real estate, and consequently… Continue Reading
Tag Archives: income taxes
List of Information Needed To Assess Tax Effects of Workouts and Foreclosures
Posted in Tax Issues, Tough Times for Lenders, Workout IssuesWhile the nature of the collateral securing a loan may change, while the local market may change, while the number and nature of the lenders in the credit stack may change, while "X" (you fill in the "X") may change, ONE thing never changes . . . . . . . income taxes. And I… Continue Reading
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