by Erik J. Burgos *
SC&H Group Tax & Advisory Services; McLean, Va.
The creation of §108(i) of the Internal Revenue Code (IRC), through the enactment of §1231 of the American Recovery and Reinvestment Tax Act of 2009 (PL 111-5, 123 Stat. 338), allows companies that buy back their troubled debt at a discount to restructure their balance sheet and possibly avoid bankruptcy without suffering major federal income tax consequences. Generally, under IRC §108(i), “cancellation of debt (COD) income realized in connection with a debt reacquisition, after Dec. 31, 2008, and before Jan. 1, 2011, of an applicable debt instrument is includible in gross income ratably over a five-taxable-year inclusion period.”[1] The five-taxable-year period begins with the taxpayer’s fifth taxable year following reacquisitions that occur in 2009 and the fourth taxable year following reacquisitions that occur in 2010.[2]
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ABI's 21st Annual Winter Leadership Conference will take place Dec. 3-5 at the gorgeous La Quinta Resort & Club in La Quinta, Calif. La Quinta is the classic Palm Springs resort, nestled at the base of the Santa Rosa Mountains. Enjoy the beautiful landscape, as well as renowned tennis, golf and the spa. This year's conference will offer insights from some of the top insolvency and restructuring experts on issues confronting the profession in 2010.
The Bankruptcy Taxation Committee will present a session entitled "Where's My Cash Windfall? Tax Planning Opportunities from Recent Legislation" on Saturday, Dec. 5 at 9:30 a.m. Panelists will discuss recent changes in legislation and how to maximize the benefits of the resulting tax attributes during and after a company's turnaround period. Joseph P. Dawson of Dawson & Gerbic, LLP in Seattle will moderate the panel. Panelists will include Kenneth K. Bezozo of Haynes and Boone, LLP in Dallas, Darren D. Farfante of Fowler White Boggs PA in Tampa, Fla. and Jennifer R. Noel of Young Conaway Stargatt & Taylor, LLP in Wilmington, Del. Click the link below to view the materials.
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Not able to attend an ABI conference? Watch or listen to selected sessions of various ABI programs via the ABI Distance Learning Center starting at the low cost of $65 per session. Many of the sessions are currently on sale as well. ABI Distance Learning provides expanded online access to programming from ABI meetings and events in audio or video format, with the opportunity to earn CLE credit from the convenience of your home or office computer - 24 hours a day, 7 days a week. Click the link below to check out the hundreds of Distance Learning sessions available.
ABI Distance Learning
