Bankruptcy

Chapter 13: Tax Considerations

Since the bankruptcy law was amended in 2005, many individuals have been channeled to Chapter 13, under which a debtor typically pays off a greater amount of debt through a court-approved repayment plan.

Taxpayers Who Did Not Establish Insolvency Must Recognize COD Income

Taxpayers who settled a credit card debt for $4,412 less than they owed in 2008 had to include that amount in income because they did not prove they were insolvent under Sec. 108(a)(1)(B) at the time of the debt discharge (Shepherd, T.C. Memo. 2012-212). Sec. 108(a)(1)(B) excludes cancellation of debt

Basic Bankruptcy Treatment of Income Tax for Individuals

This item attempts to clarify whether income taxes can be dismissed in bankruptcy and discusses certain aspects of bankruptcy and other options that CPAs need to be aware of in order to best represent their individual clients.

Newsletter Articles

SPONSORED REPORT

States look to unclaimed property for revenue

State audits of abandoned and unclaimed property (AUP) have exploded in recent years. This report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.