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Cancellation-of-debt Income
Taxpayers in the United States may have tax consequences when debt is cancelled. This is commonly known as cancellation-of-debt (COD) income. According to the Internal Revenue Code, the discharge of indebtedness must be included in a taxpayer's gross income. There are exceptions to this rule, however, so a careful examination of one's COD income is important to determine any potential tax consequences. Billions of dollars of cancelled debts will generate many unexpected tax bills, due to debt cancellations that financial institutions have started accelerating in 2012. Policy reasons behind COD income Accession to wealth The standard definition of income is found in a United States Supreme Court case entitled ''Commissioner v. Glenshaw Glass Co.'' The Court defined income as 1) accession to wealth; 2) that is clearly realized; and 3) over which the taxpayer has complete dominion. Prior to this decision, the Court had already determined that the cancellation of debt was "a fr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territories, nine Minor Outlying Islands, and 326 Indian reservations. The United States is also in free association with three Pacific Island sovereign states: the Federated States of Micronesia, the Marshall Islands, and the Republic of Palau. It is the world's third-largest country by both land and total area. It shares land borders with Canada to its north and with Mexico to its south and has maritime borders with the Bahamas, Cuba, Russia, and other nations. With a population of over 333 million, it is the most populous country in the Americas and the third most populous in the world. The national capital of the United States is Washington, D.C. and its most populous city and principal financial center is New York City. Paleo-Americ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy In The United States
In the United States, bankruptcy is largely governed by federal law, commonly referred to as the "Bankruptcy Code" ("Code"). The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States". Congress has exercised this authority several times since 1801, including through adoption of the Bankruptcy Reform Act of 1978, as amended, codified in Title 11 of the United States Code and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Some laws relevant to bankruptcy are found in other parts of the United States Code. For example, bankruptcy crimes are found in Title 18 of the United States Code (Crimes). Tax implications of bankruptcy are found in Title 26 of the United States Code ( Internal Revenue Code), and the creation and jurisdiction of bankruptcy courts are found in Title 28 of the United States Code (Judiciary and Judicial procedure). Bank ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Job Creation And Worker Assistance Act Of 2002
The Job Creation and Worker Assistance Act of 2002 (, ), increased carryback of net operating losses to 5 years (through September 2003), extended the exception under Subpart F for active financing income (through 2006), and created 30 percent expensing for certain capital asset purchases (through September 2004). The act was signed into law by President George W. Bush on March 9, 2002. External links Special Report: Job Creation and Worker Assistance Act of 2002 (JCWAA) Prof. John Wachowicz at the University of Tennessee The University of Tennessee (officially The University of Tennessee, Knoxville; or UT Knoxville; UTK; or UT) is a public land-grant research university in Knoxville, Tennessee. Founded in 1794, two years before Tennessee became the 16th state ....Senate Roll Call Vote - Job Creation and Worker Assistance [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Purchase Price Adjustment
{{More citations needed, date=March 2007 Purchase price adjustments capture the change in value of an asset typically between the negotiation and closing. Example Antonio purchased property from Shylock for $50,000. At closing, Antonio paid $10,000 to Shylock and executed a promissory note payable to "Shylock or order" for $40,000. Following the closing, Antonio approached Shylock, upset that the property was in fact worth only $42,000. After a few weeks of negotiations, the parties agreed to reduce the amount of the promissory note to $32,000. Federal Tax Implications A ''Purchase Price Adjustment'' is not included as gross income under the U.S. tax code The Internal Revenue Code (IRC), formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 .... The adjustment between the parties is merely re-setting the amount of t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washington, D.C. Senators and representatives are chosen through direct election, though vacancies in the Senate may be filled by a governor's appointment. Congress has 535 voting members: 100 senators and 435 representatives. The U.S. vice president has a vote in the Senate only when senators are evenly divided. The House of Representatives has six non-voting members. The sitting of a Congress is for a two-year term, at present, beginning every other January. Elections are held every even-numbered year on Election Day. The members of the House of Representatives are elected for the two-year term of a Congress. The Reapportionment Act of 1929 establishes that there be 435 representatives and the Uniform Congressional Redistricting Act requires t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tax Attribute
The United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ... Internal Revenue Code contains a limited number of specific statutory provisions excluding from income economic benefits that would otherwise constitute gross income under the Code. IRC § 108 constitutes one such exclusion. Section 108 excludes discharge of indebtedness from gross income under certain specified conditions, such as when the discharge occurs in bankruptcy or when the taxpayer is insolvent. Under ordinary taxation principles, discharge of debt would clearly fall within the broad definition of gross income provided by the Code. Section 108 thus provides a measure of relief for certain taxpayers who find themselves facing serious financial difficulties. Unfortunately for financially troubled taxp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Code
In the law of the United States, the Code of Laws of the United States of America (variously abbreviated to Code of Laws of the United States, United States Code, U.S. Code, U.S.C., or USC) is the official compilation and codification of the general and permanent federal statutes. It contains 53 titles (Titles 1–54, excepting Title 53, which is reserved for a proposed title on small business). The main edition is published every six years by the Office of the Law Revision Counsel of the House of Representatives, and cumulative supplements are published annually.About United States Code Gpo.gov. Retrieved on 2013-07-19. The official version of these laws appears in the '' United States Stat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Department Of Education
The United States Department of Education is a Cabinet-level department of the United States government. It began operating on May 4, 1980, having been created after the Department of Health, Education, and Welfare was split into the Department of Education and the Department of Health and Human Services by the Department of Education Organization Act, which President Jimmy Carter signed into law on October 17, 1979. The Department of Education is administered by the United States Secretary of Education. It has 4,400 employees - the smallest staff of the Cabinet agencies - and an annual budget of $68 billion. The President's 2023 Budget request is for 88.3 billion, which includes funding for children with disabilities (IDEA), pandemic recovery, early childhood education, Pell Grants, Title I, work assistance, among other programs. Its official abbreviation is ED ("DoE" refers to the United States Department of Energy) but is also abbreviated informally as "DoEd". Purpose a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Angus King
Angus Stanley King Jr. (born March 31, 1944) is an American lawyer and politician serving as the junior United States senator from Maine since 2013. A political independent since 1993, he previously served as the 72nd governor of Maine from 1995 to 2003. King won Maine's 2012 Senate election to replace the retiring Republican Olympia Snowe and took office on January 3, 2013. He was reelected to a second term in 2018, following the state's inaugural instant-runoff voting elections. For committee assignment purposes, he caucuses with the Democratic Party. He is one of three independents currently serving in the Senate; the other two are Bernie Sanders of Vermont and Kyrsten Sinema of Arizona, who also caucus with the Democrats. Early life, education, and early career King was born in Alexandria, Virginia, the son of Ellen Archer (née Ticer) and Angus Stanley King, a lawyer. His father was a U.S. magistrate for the Eastern District of Virginia. He attended Dartmouth College, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Senate
The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and powers of the Senate are established by Article One of the United States Constitution. The Senate is composed of senators, each of whom represents a single state in its entirety. Each of the 50 states is equally represented by two senators who serve staggered terms of six years, for a total of 100 senators. The vice president of the United States serves as presiding officer and president of the Senate by virtue of that office, despite not being a senator, and has a vote only if the Senate is equally divided. In the vice president's absence, the president pro tempore, who is traditionally the senior member of the party holding a majority of seats, presides over the Senate. As the upper chamber of Congress, the Senate has several powers o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insolvent
In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment. For example, a person may own a large house and a valuable car, but not have enough liquid assets to pay a debt when it falls due. Cash-flow insolvency can usually be resolved by negotiation. For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty. Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts. The person or company might enter bankruptcy, but not necessarily. Once a loss is accepted by all parties, negotiation is often able to resolve the situation without bankruptcy. A company t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Third Circuit Court Of Appeals
The United States Court of Appeals for the Third Circuit (in case citations, 3d Cir.) is a federal court with appellate jurisdiction over the district courts for the following districts: * District of Delaware * District of New Jersey * Eastern District of Pennsylvania * Middle District of Pennsylvania * Western District of Pennsylvania This circuit also hears appeals from the District Court of the Virgin Islands, which is an Article VI territorial court and not a district court under Article III of the Constitution. The court is composed of 14 active judges and is based at the James A. Byrne United States Courthouse in Philadelphia, Pennsylvania. The court also conducts sittings in other venues, including the United States Virgin Islands. It is one of 13 United States courts of appeals. Due to the court's appellate jurisdiction over Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; P ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
