Tax, Bankruptcy and Financial Problems

Course Description:

This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital dissolution and living together arrangements. Current perspectives on property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined with an emphasis on planning considerations. The cancellation of indebtedness income inclusion rules are examined in the context of debt forgiveness and property foreclosure. Emphasis is given to the exceptions from income inclusion contained in §108.The tax treatment of property repossession under §1038 is explored with detail given to the calculation of gain and received property basis. Finally, bad debt treatment under §166 is reviewed and critical distinctions made between business and non business debts.

Learning Objectives:

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

• Explain how the 2005 Bankruptcy Act changed procedures.
• Delineate the rules for automatic stay and levy pointing out their impact on “freezing” creditor activity, tax assessment, and collection.
• Differentiate between preferential and non-preferential payments.
• Determine the priority of creditor claims.
• Discern when debt is discharged under various bankruptcy types.
• How to establish an individual bankruptcy estate figuring its taxable income and pointing out its tax filing requirements.