Bankruptcy Taxation

Preparing for Metamorphosis: Tax Questions Arising from Changes in Debt from Recourse to Nonrecourse (or vice versa) — Bankruptcy Discharges, Anti-Deficiency Statutes and § 1111(b)

Issues Related to Chapter 13 Plans, Including the Impact of a National Form Plan on Local Practice

Plenary Session

Find out the latest happenings in all the Southern Districts. What can impact your practice? What should?

As if the Bankruptcy Code doesn’t give us enough to ponder, bankruptcy practitioners must consider the impact of the U.S. Tax Code on the decision-making process. This session will address the Internal Revenue Code “section 1398 short year” election and separate entity rules, discharge of tax claims, cancellation of debt (COD) income, and tax issues arising from mortgage modification, foreclosure, and transfer or abandonment of property.

Developments in Net Operating Losses

A bankruptcy reorganization or out-of-court restructuring can significantly impact tax attributes such as NOLS and basis. The existence of and ability to use such attributes after a reorganization or restructuring often affects value. Two common issues must be considered with regard to a transaction’s impact on such items: the reduction of tax attributes and limitations on the ability to use tax attributes. The topics addressing absorption of tax attributes include discharge of indebtedness income, attribute reduction, stock-for-debt exchanges, debt modifications and elections. The loss-limitation overview includes a look at § 382, special bankruptcy § 382 rules and trading restrictions.