http://blog.kshgs.com CPAs in Richmond and Charlottesville Virginia Mon, 10 Jan 2011 19:11:23 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 http://blog.kshgs.com/2009/10/28/tax-consequences-of-bankruptcy/ http://blog.kshgs.com/2009/10/28/tax-consequences-of-bankruptcy/#comments Wed, 28 Oct 2009 21:24:54 +0000 General http://blog.kshgs.com/?p=77 The current economic crisis, particularly in the real estate sector, has left many businesses scrambling to find ways to reduce or eliminate debt obligations. While opportunities do exist, many must be carefully planned upfront in order to avoid unwanted, burdensome tax consequences. Many attempts by debtors to reduce, modify, or eliminate their obligations are met with federal income tax consequences not originally intended by any of the parties involved. Among those are triggering of Cancellation of Indebtedness (COD) income, realizing “phantom” gains on foreclosure of properties,
and producing inequitable results to investors in flow thru entities (i.e. partnerships, S Corporations, etc.) Whatever the situation, planning is crucial to achieving a desired result.  Read more…

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