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Handling Cancellation of Debt Income for Individuals

2 CPE for AFSP, EA, CPA, CRTP  

Financial hardships can cause taxpayers to abandon their properties, have their properties foreclosed, file for bankruptcy or restructure their debt. As a result, they may receive Forms 1099-A, Acquisition or Abandonment of Secured Property, and/or 1099-C, Cancellation of Debt, with their year-end information. Our job is to determine whether the taxpayer has taxable income as a result and how to report it. Additionally, we will review when to use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

Objectives
Upon completion of this session, you will be able to:

  • Illustrate how the taxpayer reports Form 1099-A and Form 1099-C  

  • Determine whether there is taxable cancellation of debt income (CODI)  

  • Identify the deemed selling price when reporting a Form 1099-A sale 

  • Complete Form 982

CPE information
Duration: 100 minutes
Course level: Basic
Prerequisite: None
Advanced preparation: None
Delivery method: Group Live

Raj

President at Eagle Tax Planning & Advisory Group LLC

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