Debt: Selected Debt-Related Issues 2022 ON DEMAND

Overview

This course brings the practitioner information on tax issues affecting interest and debt. The various types of interest and their required allocation are explored and reviewed. Special attention is devoted to debt cancellation, repossession, discounts, and foreclosure for the economically troubled client. The program also discusses installment sales, taxable interest, and bad debts.

Highlights

Deductible interest and debt. Nondeductible interest. Below-market interest rate loans. Unstated or imputed interest on sales. Original Issue Discount (OID). Allocation of deductible interest. Taxable interest. Installment sales. Debt cancellation and foreclosure. Bad debts.

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Determine what constitutes “interest” specifying its key components, and identify whether the various types of interest are tax deductible or nondeductible. Recognize how to deduct interest that is paid or accrued during the tax year applying different methods of accounting, specify the applicable federal rate, recognize the effects of unstated interest on transactions, and cite the imputed interest rules in the context of debt instruments. Identify the interest allocation rules and the allocation period for a loan, recognize the difference between an allocation of loan proceeds that are deposited in an account and the allocation of loan proceeds received in cash, and cite loan repayments in the order they are deemed repaid, and much more.

Preparation

None.

Notice

None.