Did Anyone See This?

[BOB W]

Business May Delay Cancellation of Debt Income for Years
Earlier this year, Congress passed code section 108(i) that allows businesses to elect to defer the inclusion of cancellation of debt income (CODI) from the reacquisition of their debt in 2009 and 2010 for several years. Specifically, businesses may elect to defer the CODI from a 2009 debt reacquisition until 2014. Beginning In 2014, the CODI would be included ratably in gross income over a five year period. The CODI recognition from a 2010 debt reacquisition also would begin in 2014 and be included ratably in gross income over the same five-year period. Click below for the full article.

http://www.nsacct.org/uploadedFiles/Business%20May%20Delay%20Cancellation%20of%20Debt%20Income%20for%20Years.doc

[jimmcg]

Business May Delay Cancellation of Debt Income for Years
Earlier this year, Congress passed code section 108(i) that allows businesses to elect to defer the inclusion of cancellation of debt income (CODI) from the reacquisition of their debt in 2009 and 2010 for several years. Specifically, businesses may elect to defer the CODI from a 2009 debt reacquisition until 2014. Beginning In 2014, the CODI would be included ratably in gross income over a five year period. The CODI recognition from a 2010 debt reacquisition also would begin in 2014 and be included ratably in gross income over the same five-year period. Click below for the full article.

http://www.nsacct.org/uploadedFiles/...or%20Years.doc

Yes, this is significant and has been covered in the two tax update meetings I have attended recently. Also reference RevProc 2009-37 for some practical applications of the new Sec 108(i).