Guide to Dealing with Debt and Interest

Course Description:

This course brings the practitioner up-to-date information on tax issues affecting interest and debt. It covers the definition of bona fide debt, the avoidance of equity and lease treatment, imputed interest rates and debt modification. The various types of interest and their required allocation are explored and reviewed. For economically troubled client, special attention is devoted to debt cancellation, repossession, discounts, and foreclosure. The program also discusses installment sales, equity participation debt, taxable interest, and bad debts.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

·        Explain the general rule for the tax treatment of points listing the nine exceptions.

·         Identify when a stock in a cooperative housing corporation owned by a tenant-stockholder is a qualified home allowing for a deduction of interest.

·         Apply the limits on the home mortgage deduction to ensure that appropriate deductions are taken.

·         Analyze eleven special situations that affect qualified home mortgage interest.

·         Define “interest” and determine whether and how much is tax deductible under §163.

·        Categorize deductible interest identifying special calculation concepts and procedures.