This mini-course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital and financial setbacks. Property transfers, asset divisions, alimony, filing status, exemptions, and child support are exam-ined.
The cancellation of indebtedness income inclusion rules are discussed in the context of debt forgiveness and property foreclosure. Emphasis is given to the exceptions from income inclusion contained in §108. The tax treatment of prop-erty repossession under §1038 and bad debt treatment under §166 is reviewed.
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless oth-erwise indicated, no correct or incorrect feedback for any exam question will be provided.
Course Level: Overview. This program is appropriate for professionals at all organizational levels.
Field of Study: Taxes
Prerequisite: General understanding of federal income taxation.
Advanced Preparation: None
Learning Assignment & Objectives
As a result of studying the assigned materials, you should be able to meet the objectives listed below.
ASSIGNMENT
At the start of the materials, participants should identify the following topics for study:
* Marital tax liability
* Transfers incident to divorce
* Alimony & child support
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* Debt cancellation & income inclusion rule
* Reduction of tax benefits
* Foreclosure
* Repossession of personal property
* Repossession of real property
* Non-business bad debts
* Business bad debts
Learning Objectives
After reading the materials, participants will be able to:
1. Recognize tax considerations and tax guidance for marital break-downs and, identify marital status specifying the effect marital status has on filing status and federal income tax obligations.
2. Identify state marital property provisions, cite the elements of §1041 identifying at least two tax traps for the unaware, and specify variables that determine whether a payment is alimony.
3. Determine the exceptions to the general income inclusion rule spec-ifying their tax impact, and recognize the various issues related to cal-culating gain or loss resulting from foreclosure or repossession in-cluding the differences between personal and real property reposses-sion, amount realized on sale, or other distribution of property in a foreclosure, and basis calculation on repossession of property.
4. Identify nonbusiness and business bad debts under §166 determin-ing their differences in Code requirements and amount allowed.
After studying the materials, answer exam questions 1 to 10.
Notice
This course and test have been adapted from materials and information contained in the above text and any supplemental material provided. This course is sold with the understand-ing that the publisher is not engaged in rendering legal, accounting, or other professional ad-vice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice.
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