An Overview of the Rules Regarding the Realization and Recognition of Debt Cancellation Income- Part II

Tom Gallagher and Dennis Cohen are co-authors of an article published in the October 2020 issue of Pratt’s Journal of Bankruptcy Law. The second in a two-part series providing an overview of how the income tax rules relating to debt cancellation income (COD income) work, this article focuses on the COD income rules applicable to real estate indebtedness. The authors explore the issue of COD income in connection with debt restructurings and other transactions involving real property.

 

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