Making the Best of Bad Situations 2025 - 2 CPE
TEXAS COMPLIANCE PENDING:
Texas requires a class be reviewed by enough students to assign earned CPE credits. This course is still new enough that we are obtaining the reviews needed. We recommend Texas CPAs check back soon. This process is usually finished within a few weeks.
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 examined.
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 property 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 otherwise 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
* 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 tax liability and refund offsets.
2. Identify the elements of §1041 nonrecognition and specify variables that determine whether a payment is alimony.
3. Determine the exceptions to the general income inclusion rule and recognize the tax issues in calculating gain or loss resulting from foreclosure or repossession including the differences between personal and real property repossession.
4. Identify nonbusiness and business bad debts under §166 determining their differences in Code requirements and amount allowed.
After studying the materials, answer exam questions 1 to 10.
