The federal tax code imposes an income tax on all income, from whatever source derived. This explicitly includes debt forgiveness. This course explores the reasons that cancellation of debt is included in income and describes the various exclusions from recognizing such income for tax purposes. The specific consequences of excluding cancellation of debt income are described, as well as the special rules related to debt forgiveness in the context of S corporations and partnerships. Finally, this course identifies the reporting obligations that arise from the cancellation of debt. This intermediate level course is most appropriate for the professional with detailed knowledge in taxation or the professional seeking to expand his or her knowledge base and who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.

By proceeding to the examination, you acknowledge and confirm that you have completed the required coursework.