•  
  •  
 

Abstract

Frequently, as part of debt restructuring where indebtedness is discharged, the income tax basis of part or all of the debtor's assets is to be reduced. The procedures for reduction of basis vary some depending upon whether the discharge of indebtedness is in bankruptcy, is for a debtor who is insolvent but not in bankruptcy, is for a solvent farm debtor, or involves a purchase price reduction. In some instances, the basis is reduced down to the aggregate indebtedness on the property; in other instances, notably when the election is made to reduce the basis of the depreciable property first, the basis is to be reduced to zero.

Share

COinS
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.