|
Posted by rtd21 on March 27, 2008, 11:13 pm
Please log in for more thread options
A partnership has $1 million in unpaid trade accounts payable and no
assets, with judgements against it by the vendors for the $1 million
of trade ap. The partnership is winding up and preparing its final
Form1065.
When the partnership reports the $1 million of income out to its
partners on final K-1s, are there cases where the income can be
reported as a type of income the partner can get out of reporting as
taxable, by inciting the "insolvent outside of bankruptcy" exception
to recognizing income from debt relief?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap