foreclosure

The “What Ifs” for Struggling Taxpayers

Many of life’s events such as losing a job, foreclosure of a home or even forgiveness of a debt impact the payment of taxes. The tax law offers hope in these situations. As an example, if a taxpayer’s income decreases, he or she may be eligible for certain tax credits, such as the Earned Income Tax Credit. In this blog, We will present a list of quick answers to life event situations that have a potential impact on an individual’s tax burden. For more information see our blogs: Part 1 – What If: Job Related Life Events and Struggling Taxpayers; and Part 2 – What If: Debt Related Life Events and Struggling Taxpayers.

Relating to the allocation of partnership liabilities and the tax implication of a foreclosure

Issue

What is the allocation of partnership liabilities and the tax implication of a foreclosure?

Related Tax Rule or Regulation

Internal Revenue Code Section 465

Internal Revenue Code Section 704

Internal Revenue Code Section 731

Internal Revenue Code Section 752

Internal Revenue Code Section 1001

Tax Regulation § 1.1001-2(c),

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