New in 2013!The ACPEN Signature Series™ schedule for 2013 is now online! These courses are the flagship CPE events of ACPEN. Signature Series™ courses, beginning in May each year, continue monthly throughout the year. Each showcases important and timely CPE topics, using enhanced production techniques, delivered by panels consisting of national experts, practitioners, and representatives of regulatory and standard setting bodies. To see what courses are included in the Series this year, please click on the ACPEN Signature Series category below. Signature Packages will be available soon along with ouy newly redesigned catalog! |
ACPEN Signature Series: CPAs Guide to Tax Planning for Debt Cancellation and Restructuring
Length: 8 Hours
CPE Credits: 8
Description: What happens, for tax purposes, when a loan is restructured? What about on a foreclosure? Any help for the taxpayer on a mortgage of a principal residence? Tax rules vary widely depending on the type of entity that is the debtor, the business of the debtor, the property involved, whether the debt is recourse or non-recourse and the terms of the transaction. In this all-new ACPEN course, our panelists will explore when a debt is actually cancelled, special rules under Internal Revenue Code Section 108 including those applicable to conversion of partner debt into equity, differences between partnerships and S corporations, purchase price adjustments and acquisitions of debt by related parties.
Participants will receive a review of the rules on debt cancellation in bankruptcy, when the debtor is insolvent, and when the debt is qualified farm indebtedness. Learn how a bankruptcy may be more advantageous than insolvency in the tax context. In addition, our panel of experts will review the rules for the elective exclusion of qualified real property business indebtedness. We will also review and explain the required reduction in tax attributes and available elections. In this complex area, there are traps for the unwary and opportunities for planning!
Major Topics:
When is debt cancelled?
Statute of Limitations
Write-off
Un-collectability
Distinguish disputed debt (liquidated versus un-liquidated debt)
o When a lender has to issue a 1099
o What are the options when you disagree
Special rules under IRC Section 108:
Special rule for qualified principal residence mortgage restructuring
Debt contributed to capital
Debt/equity exchanges
Cancellation of partner debt
Related party debt acquisition
Purchase price adjustments
Deductible expense exception
Debt cancellation traps in loan restructuring:
IRC Section 1001--is there a deemed exchange; are you going to generate COD income?
Installment sales issues
Issues with guaranteed debt
Debt cancellation in bankruptcy:
When does it occur?
How does it occur?
Exceptions – trust fund penalty, fraud, others
Asset exemptions
Overview of bankruptcy
When can taxes be cancelled?
Section 1398 adjustments arising from bankruptcy
The insolvency exception:
Differences between recourse and non-recourse debt
Effect in partnerships
Effect in S corporations
Defining insolvency (Carlson, Johns & Quartemont cases)
Intentionally structuring to trigger capital gains to get a better tax rate.
Section 1017 basis adjustments and special rules outside bankruptcy
Elections
Special Rules on cancellation of farm indebtedness:
Elective exclusion of COD for real estate:
Produced By:
Faculty
- James A. Smith, CPA
- James A. Smith, CPA, serves as Managing Director of Smith, Jackson, Boyer & Bovard, PLLC, a Dallas based, full service Certified Public Accounting firm. Mr. Smith began his career with a major international accounting firm where he served in both the audit and tax divisions. Mr. Smith has appeared as a featured commentator on all four Dallas/Ft. Worth network news stations, including three and one-half years as a featured business commentator on KXAS, TV5; on the TSCPA “CPAs on Call” state wide tax television program; and on various radio news programs. He has conducted seminars on tax and financial planning for the Dallas Chapter of the TSCPA and stock brokerage firms and life insurance companies, and on marketing and practice management for the TSCPA, the North Carolina Association of CPAs, the Arkansas Society of CPAs, the Pennsylvania Institute of CPAs, and the American Institute of CPAs. Mr. Smith served as Chair of the Texas Society of CPAs (TSCPA) for the 2007-2008 year, and as a member of its Executive Board and its Board of Directors. He is currently serving a three year term as an elected member of the American Institute of CPAs (AICPA) Council and is an appointed member of the AICPA Accounting and Review Services Committee. In recognition of his service, Mr. Smith has been named by the TSCPA as Outstanding Steering Committee Chairman for the year 1999-2000, Outstanding Committee Chairman for the year 1995-1996, and Outstanding Committee Member for the Year 1992-1993 and 1995-96. The Dallas Chapter of the TSCPA also named him CPA of the Year for 1999-2000. Mr. Smith is a Certified Public Accountant in the state of Texas and is a graduate of Southern Methodist University with a BBA in Accounting and Economics.
- C. Clinton Davis, CPA, JD
C. Clinton Davis, CPA, JD, is a partner in the Dallas, Texas law firm of Krage & Janvey, LLP. He is a frequent presenter at continuing education programs for both accountants and lawyers, including not-for-profit organizations, partnership and real estate planning. He is the author of Texas Society of Certified Public Accountants (TSCPA) courses, Fundamentals of LLC and Partnership Taxation, and Tax Planning for Real Estate and Small Business. Clint is Board Certified in Tax Law by the Texas Board of Legal Specialization. He represents numerous pass-through and charitable entities. Clint has served as program chair or presenter on several ACPEN programs in the areas of tax, not-for profit and business entities.
- Dean Hinderliter, JD
- Dean Hinderliter, JD, is a partner with the Dallas law firm, Locke Lord, LLP. He advises partnerships and limited liability companies in connection with ongoing operations, acquisitions, restructurings, financings, unwinds and incorporations. He also counsels clients on all the tax aspects of corporate transactions, including acquisitions, divestitures, private equity investments, public offerings, tax-free reorganizations, leveraged buyouts, the formation of joint ventures and S corporation issues. In addition, Mr. Hinderliter advises financially troubled and bankrupt companies on a variety of issues, including debt restructurings, preservation of net operating losses, and internal corporate restructurings. He earned an LL.M. in taxation from New York University where he received the Harry J. Rudick Memorial Award as the outstanding graduate. Dean has a J.D. from The University of Oklahoma School of Law where he served as an editor of the Law Review and graduated Order of the Coif. His undergraduate degree is from Drury College. Prior to practicing in Texas, he was an attorney at Skadden Arps Slate Meagher & Flom.
- Eric W. Anderson, JD
- Eric W. Anderson, JD is a partner in the Atlanta office of Parker, Hudson, Rainer & Dobbs LLP, and is a member of the firm's bankruptcy practice group. Mr. Anderson is a 1982 graduate with distinction of the University of Wisconsin-Madison and earned his J.D. degree cum laude in 1986, also from the University of Wisconsin Law School. Mr. Anderson concentrates his practice in bankruptcy, workouts, financial restructuring and commercial finance. He regularly represents banks, financial institutions, secured asset-based lenders and other parties in bankruptcy and financial restructuring matters both in and out of bankruptcy, debtor-in-possession financing, loan collection and enforcement, purchase and sale of assets of distressed companies and various related transactions. Eric is a frequent speaker and lecturer on bankruptcy and insolvency law topics, and has authored several articles on bankruptcy issues as well. Eric is a member and incoming co-chair of the Advisory Board for the American Bankruptcy Institute's Southeast Bankruptcy Workshop, and is a Contributing Editor for the American Bankruptcy Institute's ABI Journal.Eric is a Fellow in the American College of Bankruptcy, and is also a member of the Board of Directors of the Southeastern Bankruptcy Law Institute and of Meritas, a worldwide law firm organization. Mr. Anderson is a member of the Board of Directors of the Atlanta Bar Association, and is a past Chair of the Atlanta Bar Association Bankruptcy Law Section.Eric has been selected as one of Georgia's Legal Elite in 2007 - 2012, as one of Georgia's leading practitioners, and has been listed as a "Georgia Super Lawyer" in Atlanta Magazine. He has also been recognized by Chambers USA as one of America's leading lawyers for business in 2007 – 2012, and by Best Lawyers in America for 2012.
CPE Credits: 8
Field of Study 1: Taxes (8 hours)
Program Level (Basic, Update, Intermediate, Advanced, Overview): Intermediate and Update
Prerequisites: None
Advanced Preparation: None
Instructional Delivery Method: Group Internet Based
Course Registration Requirements: Online Registration
Designed For: Public Practice
Course Developer: ACPEN
Refund/Cancellation Policy: Please contact the ACPEN help desk - 1-800-747-1719 or help@acpen.com if you wish to cancel your attendance for a previously purchased webcast and are requesting a refund or transfer.
Complaint Resolution Policy: Please contact Anne Taylor for any complaints. anne.taylor@acpen.com, (972-377-8199).
Official Registry Statement: Business Professionals' Network, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org
Course Materials
- Article

- ACPEN_Signature-Tax_Planning_for_Debt_Cancellation_Restructuring

- Important CPE Credit Information_2012

- Course Outline_6_27_12

- Questions and Answers

For Catalog Support: 1-800-747-1719 or email support