Tax Planning Trends and Considerations for Distressed Debt

When an organization modifies its debt, understanding the consequences and potential planning opportunities of the restructuring is key.

Please join professionals from the KPMG M&A Tax, State and Local Tax, and Economic Valuation Services practices, as well as the Washington National Tax office, as they discuss:

• Situations where a taxpayer may have to recognize cancellation of debt income, including what valuation information is needed to calculate that amount
• The calculation of cancellation of debt income and potential differences in attribute reduction for U.S. federal income tax and state income tax purposes
• When there is a significant modification of a debt instrument under IRC section 1001 and the potential tax consequences to the taxpayer
• Opportunities to apply approaches that taxpayers have used to enhance tax efficiencies when doing a debt workout transaction.