Section 108(i) of the American Recovery and Reinvestment Act of 2009 permits C corporations and taxpayers engaged in business or trade to defer COD (Cancellation of Debt) income recognition for a period of 4-5 years. While making the 108(i) election has its advantages, one must carefully weigh the pros and cons before moving forward. In this Knowledge Group Section 108(i) LIVE webcast, a panel of distinguished professionals experts will help you understand the most critical issues which will include:
- Overview of the fundamentals
- Advantages and disadvantages of making the election
- Partnerships
- Timing issues
- Up-to-the-minute regulatory updates
- Live interactive Q&A session
This live webcast will provide tax and related professionals with a comprehensive overview of making the 108(i) election along with its pros and cons. Attending this course will give you the tools you need to understand how to make this election at your firm. Advanced registration is recommended as space is limited.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 093893
Jonathan Zelnick
Principal in the Financial Institutions and Products Group
David F. Levy
Partner, Tax
David B. Cubeta
Member
Brian Knudson
Partner
Jonathan Zelnick, Principal in the Financial Institutions and Products Group, KPMG LLP
** Speaker Agenda to be added soon.. **
David B. Cubeta, Member, Miller & Chevalier
I. Timing whip-saws from debt modifications.
A. When a modification is a deemed exchange.
B. Exchange consequences.
1. Non-publicly-traded debt
2. Publicly-traded debt.
C. Section 108(i) election’s income deferral election.
D. OID adjustments
II. Other possible topics
A. Application of section 108(i) to a consolidated group when one member acquires another member’s debt.
B. Sourcing consequences of COD income for the foreign tax credit.
David F. Levy, Partner, Tax, Skadden, Arps, Slate, Meagher & Flom LLP
- Understanding The Advantages and Disadvantages Of Making A 108(i) Election
- Different rules applicable to distressed corporations and distressed passthroughs provide different types of incentives to use or not use a 108(i) election
to manage COD income
- Discussion of situations in which a 108(i) election will prove beneficial
- Discussion of situations in which other strategies may prove more beneficial than a 108(i) election
- Bankruptcy process (prepackaged or non-prepackaged)
- Reliance on another COD exception (e.g., insolvency, real estate, etc)
- Abandonment of a distressed asset or entity
- Tax efficient debt buyback strategies
- Long term planning issues associated with a 108(i) election
Brian Knudson, Partner, Ernst & Young, LLP
I. Application of Section 108(i) to partnerships
A. Basic overview of statute.
1. Applicable debt requirement for partnerships.
2. Election at partnership level.
3. Triggering of deferral upon certain transactions.
4. Deferral of Section 752(b) distributions.
B. Rev. Proc. 2009-37 and partnerships.
1. Flexibility in determining amount of deferred income.
2. Flexibility in allocating deferred income v. includible COD.
3. Information reporting requirements.
4. Other partnership related guidance.
5. Remaining unanswered questions.
- CPAs, Corporate Tax Professionals & Finance Executives, Enrolled Agents
- Tax & Finance Attorneys, Corporate Counsel (Tax)
This is a must attend event for anyone interested in understanding Sections 108(i)
- New guidance explained by the most qualified key leaders & experts
- Interact directly with panel during Q&A