Dealing With Debt & Interest ON DEMAND

Overview

This course brings the practitioner up-to-date information on tax issues affecting interest and debt. It covers the definition of bona fide debt, the avoidance of equity and lease treatment, imputed interest rates and debt modification. The various types of interest and their required allocation are explored and reviewed. For the economically troubled client, special attention is devoted to debt cancellation, repossession, discounts, and foreclosure. The program also discusses installment sales, equity participation debt, taxable interest, and bad debts.

Highlights

Deductible interest and debt. Allocation of deductible interest. Home mortgage interest. Taxable interest. Installment sales. Repossession. Debt cancellation and foreclosure. Equity participation debt. Foreign interest withholding. Bad debts.

Prerequisites

None.

Designed For

This program is appropriate for professionals at all organizational levels.

Objectives

Determine “interest” and select how much tax is deductible under Section 163. Determine the allocation of deductible interest based on the use and repayment of the loan proceeds. Identify the special rules for the allocation of interest expense in connection with debt-financed acquisitions of, and distributions from, partnerships and S corporations. Identify categories of mortgages and characteristics of secured debt that influence the deductibility of interest, “qualified home,” and special situations affecting mortgage interest. Identify distinctions between dividends and interest noting the taxability of interest on CDs, deferred interest accounts, frozen deposits, and U. S. obligations and specify the treatment of other miscellaneous interest items, and much more!

Preparation

None.

Notice

None.