Tax Planning for Cancellation of Debt
Joseph B. Darby III was a speaker at a live webinar entitled "Tax Planning for Cancellation of Debt," sponsored by Thomson Reuters.
This program addressed the tax aspects of cancellation of debt, both from a cancellation occurring in bankruptcy and a cancellation or modification resulting from a negotiated settlement between a lender and a distressed borrower. This program focused on the unfortunate and increasingly common circumstance where taxpayers are in dire economic straits, and cannot pay off their outstanding debts. The modification or cancellation of outstanding debts can lead to complicated and often adverse tax consequences to both the borrower and the lender.