Foreclosures, Debt Cancellation and Bankruptcy 

Fees: $97 for Members and $113 for Nonmembers

Summary
Today’s economy has left many people financially distressed. In uncertain times, as tax professionals, we need to provide the confidence our clients need to know that their transactions are reported correctly to the IRS with the least amount of tax impact possible. If you have clients faced with financial challenges, you don’t want to miss this course!

Table of Contents

Objectives
Upon completion of this course, the tax professional will be able to:

• Determine if debt is recourse or nonrecourse.
• Calculate gain or loss on a foreclosure.
• Compute the amount of any debt discharge income resulting from a foreclosure.
• Identify the proper tax year to report the foreclosure.
• Transfer information reported on Forms 1099-A and/or 1099-C to Form 1040.
• Determine if a taxpayer is solvent or insolvent.
• Identify the date a debt is cancelled.
• Apply relief provisions, where applicable, to clients’ tax returns.
• Compute the excludable amount of debt discharge income.
• Complete Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness.
• Distinguish among the various types of bankruptcies.
• Identify items reported by the bankruptcy estate vs. the individual.
• Prepare Form 1041 for a bankruptcy estate.
• Identify debts, including taxes, which are dischargeable in a bankruptcy.
• Classify items as deductible or nondeductible expenses of the bankruptcy estate.

For more information regarding refund, complaint and/or program cancellation policies, please contact our Member Services Department at 800.558.3402. ext. 3.

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