Instructor for this course
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This course reviews federal income US tax considerations affecting owners of and lenders to troubled businesses. We start with a discussion of rules concerning debt restructurings, and their implications to lenders and borrowers. We review considerations concerning the protection of valuable tax attributes, such as net operating loss carryovers. We then cover approaches for harvesting tax benefits for losses on entities and investments. We then describe certain hazards that can arise in capitalizing on a troubled entity. Finally, we discuss potential personal liability to management and other responsible persons for “trust fund” taxes.

The course is designed for accountants, managers, financial professionals, investors, CFOs, and other professionals who operate, invest in, or otherwise are affected by, businesses and investments in financial distress.

Learning Objectives

  • Explore and learn common approaches to debt restructurings and modifications and their tax implications.
  • Discover and understand US tax rules affecting net operating losses, restrictions on their usage, and considerations regarding loss management and planning under current tax rules.
  • Identify ways of harvesting tax benefits for losses on business assets and investments.
  • Discover and understand pitfalls that can apply in capitalizing companies that have become subject to financial distress.
  • Explore and learn about potential pitfalls concerning personal liability for withheld employment taxes by troubled entities.
Last updated/reviewed: June 4, 2021

Prerequisites

Course Complexity: Foundational

Fundamental knowledge of common tax, business, and legal terms. Finance and accounting professionals with some tax background would generally have this knowledge.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  4:06Introduction to Tax Planning for Troubled Businesses and Investments
  10:58Debt Foreclosures and Restructurings
  11:16Debt Foreclosures and Other Transfers
  10:38Debt Foreclosures and Restructurings Cont'd
  15:08Protecting Tax Attributes
  11:00Protecting Tax Attributes Cont'd
  11:26Harvesting Losses
  9:23Harvesting Losses Cont'd
OTHER TOPICS
  5:22Capitalization Hazards
  5:09"Trust Funds" Taxes
  3:36Rescission
  4:46Conclusion
CONTINUOUS PLAY
  1:42:48Tax Planning for Troubled Businesses and Investments
SUPPORTING MATERIAL
  PDFSlides: Tax Planning for Troubled Businesses and Investments
  PDFTax Planning for Troubled Businesses and Investments Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM