When a taxpayer has debt cancelled, it is taxable income unless there is an applicable exclusion.  This course reviews the rules related to income inclusion, how to calculate the income inclusion, the exclusions available to taxpayers, and the tax cost of those exclusions.

Learning Objectives

  • Understand when a cancellation of debt creates taxable income.
  • Describe the various exclusions available to avoid tax on cancellation of debt income.
  • Quantify how the exclusion impact the taxpayer's tax attributes.

Education Information

IRS Program Number: NMVBP-T-00180-21-S

Length: 100 minutes plus optional question-and-answer session (no CE)

Prerequisite: None

Advanced Preparation: None

Program Level: Basic

Delivery Method: Self-Study

Field of Study: Federal Tax (IRS);

Credit hours: 2 IRS CE

Instructor: Thomas Gorczynski, EA, CTP, USTCP Click here to learn more about the instructor

All continuing education credit is provided through Gregory & Associates, Inc. which is doing business as Compass Tax Educators. Click here for more information regarding our education policies.

You may also be interested in...