Temporary Deferral Of Cancellation-Of-Indebtedness Income Under The Recovery And Reinvestment Act Of 2009.
Mondaq Business Briefing › Nbr. 2009, January 2009
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Temporary Deferral Of Cancellation-Of-Indebtedness Income Under The Recovery And Reinvestment Act Of 2009.
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the "Act"). Among its provisions, the Act permits certain taxpayers to elect to defer the taxation of cancellation-of-indebtedness ("COD") income arising from certain repurchases, exchanges or modifications of their outstanding debt that occur during 2009 and 2010.
Current Law Currently, taxpayers with outstanding debt may be subject to tax on COD income when all or a portion of such debt has been economically cancelled. COD income can arise in a number of circumstances, including forgiveness of debt by th...See the full content of this document
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