Pass-Through Entities and COD Income: Sheltering Solvent Entity Owners From Insolvent Entity Taxable COD Income
Section 108 Relief, Qualified Real Property Indebtedness, Reducing Tax Attributes, and Entity Restructuring
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers and counsel with a review of insolvent pass-through entities and the options available to protect solvent owners from realizing taxable cancellation of debt (COD) income. The program will highlight how COD income is treated for various types of business entities under the IRC and discuss IRC Section 108 exclusions, as well as focus on recent developments that provide a strategy for protecting solvent owners of insolvent pass-through entities.
Outline
- Cancellation of debt income
- COD income and partnerships
- COD income and S corporations
- Exceptions to income recognition
Benefits
The panel will review these and other notable issues:
- What is the impact of the dual authority for insolvent pass-through entity owners to terminate and elect entity tax classification?
- What are the key differences in handling insolvency for shareholders and partners?
- What tax attributes can defer gain recognition, and how are they ordered?
- Which taxpayers are eligible for the qualified real property indebtedness relief?
- What guidance can tax advisers offer to overcome creditor challenges to an insolvent pass-through changing its tax status to avoid attribution of COD income to its owners?
Faculty
Mario Amaya-Lainez, CPA
Senior Manager, National Tax Office - Partnerships
BDO USA
Mr. Amaya-Lainez specializes in partnership taxation with a primary focus on partnership restructurings, such as... | Read More
Mr. Amaya-Lainez specializes in partnership taxation with a primary focus on partnership restructurings, such as partnership mergers and acquisitions, partnership incorporations, and leveraged buy-outs. In addition, he has extensive experience serving clients that conduct business operations through partnerships, including tracking and maintaining partnership capital accounts, yearly income allocations, and assisting with estimates of tax distributions. Throughout his career, Mr. Amaya-Lainez has served clients in a wide array of industries, including healthcare, private equity, hedge funds, manufacturing, government contracting, and real estate. He is a frequent author and lecturer on partnership taxation.
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Nick Gruidl
Partner, Washington National Tax
RSM US
Mr. Gruidl has experience working with both publicly held and privately held businesses. His client service focus... | Read More
Mr. Gruidl has experience working with both publicly held and privately held businesses. His client service focus is on advising clients and firm personnel on corporate M&A activity; private equity transactions, consolidated group issues; analysis of net operating loss issues, and partnership taxation. He develops and delivers internal and external training on corporate tax and transaction related issues.
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Brian Keida, CPA
Tax Managing Director
PwC
With more than thirteen years of public accounting experience, Mr. Keida’s industry focus has been serving... | Read More
With more than thirteen years of public accounting experience, Mr. Keida’s industry focus has been serving clients predominantly in the real estate and asset management industry. The clients primarily have been investment funds, real estate companies, home builders and developers, REIT’s, private equity and sovereign wealth funds. His technical focus is in the areas of partnership compliance and structuring with diverse investor profiles, revenue recognition for home builders, in-bound foreign investment in US real estate, REIT and corporate taxation.
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