This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of bankruptcy, property settlements, debt cancellation, and foreclosure. Current perspectives on asset protection, repossession, and bad debts are examined with an emphasis on planning considerations. The cancellation of indebtedness income inclusion rules are examined in the context of debt forgiveness and property foreclosure. Emphasis is given to the exceptions from income inclusion contained in section 108. The tax treatment of property repossession under section 1038 is explored with detail given to the calculation of gain and received property basis. Finally, eldercare and estate planning are reviewed and detailed.
Delivery Method: Online Interactive Self Study
Prerequisites: General understanding of federal income taxation.
Advanced Preparation: None
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Author: Danny Santucci
Field of Study: Taxes
Passing Score: 70%
Publication Date: 04/04/2017
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Chapter 1: Bankruptcy
1. Explain how the 2005 Bankruptcy Act changed procedures, qualifications and tax law, and identify the three most common bankruptcy types that influence how an individual or business "goes bankrupt."
2. Delineate the rules for automatic stay and levy pointing out their impact on "freezing" creditor activity, tax assessment, and collection.
3. Differentiate between preferential and nonpreferential payments, and determine the priority of creditor claims.
4. Discern when debt is discharged under various bankruptcy types and describe how to establish an individual bankruptcy estate figuring its taxable income and pointing out its tax filing requirements.
5. Contrast the special rules for partnership and corporate bankruptcies, list debts covered under homesteading, and calculate permissible garnishment amounts describing four garnishment special rules.
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