The COVID-19 pandemic and uncertainty in the political climate have created the possibility of a recession or economic downturn in the near future. The circumstances could cause many businesses and tax planning professionals to wish, in hindsight, that they had planned for such economic conditions. Specifically, the prospect of discharge of indebtedness income can impose considerable detrimental tax consequences on businesses and individuals, and adverse economic conditions can reach the importance of appropriate creditor protection. Fortunately, there are a number of planning opportunities and considerations that can be addressed in advance of or during a recession or economic downturn.

Join Alan S. Gassman, Esquire and Christopher J. Denicolo, Esquire, for Part Two of a two-part presentation to review planning for discharge of indebtedness income; business and individual insolvency; creditor protection planning; and other considerations of individuals and companies that can address to better structure their affairs in light of a possible recession or economic downturn. Part Two will emphasize creditor protection planning, reporting of discharge of indebtedness income, advanced concepts associated with the discharge of indebtedness income, and much more.  

Learning Objectives:

• Identify planning for the discharge of indebtedness income


• Determine creative techniques to avoid discharge of indebtedness income


• Identify the exceptions and exclusions to such income


• Name the difference between recourse and non-recourse loans and why it matters


• Recognize the reduction of tax attributes associated with excluding discharge of indebtedness income


• Identify creditor protection planning, including discussion of state law exemptions and techniques that individuals and businesses can implement


• Recognize tax planning and bankruptcy


• Identify relevant recording requirements