Comments for Ed Zollars, CPA CPE Materials http://cpematerials.com/blog Information related to CPE courses I present, plus other matters Thu, 29 Oct 2009 10:16:56 +0000 hourly 1 http://wordpress.org/?v=3.0 Comment on Construction Contractors (October 22, 2009) by Ed Zollars, CPA http://cpematerials.com/blog/2009/10/22/construction-contractors-october-22-2009/comment-page-1/#comment-16 Ed Zollars, CPA Thu, 29 Oct 2009 10:16:56 +0000 http://cpematerials.com/blog/?p=75#comment-16 Short sales are going to be governed by Section 108 generally for the forgiveness of indebtedness, which will generally be the amount by which the lender reduces the principal. As a general rule that is ordinary income, but if you meet the proper conditions you might be able to exclude the gain under Section 108. Most likely options would be insolvency (if the taxpayer has total liabilities in excess of assets) or the qualified real estate indebtedness option. One thing to watch, though, is whether the lender really released their claim from the taxpayer for any recourse amount. Lenders are known to let a sale go through (thus releasing their lien on the property) but still hold onto the right to pursue the borrower. In that case the forgiveness of indebtedness would not occur until either the lender did give up their rights or the rights expired under applicable law. Short sales are going to be governed by Section 108 generally for the forgiveness of indebtedness, which will generally be the amount by which the lender reduces the principal. As a general rule that is ordinary income, but if you meet the proper conditions you might be able to exclude the gain under Section 108. Most likely options would be insolvency (if the taxpayer has total liabilities in excess of assets) or the qualified real estate indebtedness option.

One thing to watch, though, is whether the lender really released their claim from the taxpayer for any recourse amount. Lenders are known to let a sale go through (thus releasing their lien on the property) but still hold onto the right to pursue the borrower. In that case the forgiveness of indebtedness would not occur until either the lender did give up their rights or the rights expired under applicable law.

]]> Comment on Construction Contractors (October 22, 2009) by Santo Messina http://cpematerials.com/blog/2009/10/22/construction-contractors-october-22-2009/comment-page-1/#comment-15 Santo Messina Mon, 26 Oct 2009 16:59:38 +0000 http://cpematerials.com/blog/?p=75#comment-15 Can you give me some more detail on selling a rental short. In the class I was not able to pickup all of it. A reference or a link would also be OK if you prefer. Can you give me some more detail on selling a rental short. In the class I was not able to pickup all of it. A reference or a link would also be OK if you prefer.

]]> Comment on Construction Contractors (October 22, 2009) by Ed Zollars, CPA http://cpematerials.com/blog/2009/10/22/construction-contractors-october-22-2009/comment-page-1/#comment-12 Ed Zollars, CPA Fri, 23 Oct 2009 02:53:27 +0000 http://cpematerials.com/blog/?p=75#comment-12 The material is going to stay online, so you don't need to grab it today. It will always be listed on the course date (October 22). The material is going to stay online, so you don’t need to grab it today. It will always be listed on the course date (October 22).

]]> Comment on Construction Contractors (October 22, 2009) by Vic Hausmaninger http://cpematerials.com/blog/2009/10/22/construction-contractors-october-22-2009/comment-page-1/#comment-11 Vic Hausmaninger Thu, 22 Oct 2009 17:06:53 +0000 http://cpematerials.com/blog/?p=75#comment-11 I am attending your presentation today at the Westin and opened up your website. This is really excellent!! I very much appreciate your efforts in putting all this together and making it so readily available--very kind of you! Will this material be available in the future in some "archived" basis or do I need to print off now what I may need in the future? Also, I would like to talk to you about a few things. Please call me at the number below when you get some time--no rush. Again, thanks for all this good information and a very good class today. Unfortunately I will have to leave early--pick up my son from UCLA and go to a Laker game :) Have a good rest of the day and a safe trip home Vic Hausmaninger 949-833-2815 I am attending your presentation today at the Westin and opened up your website. This is really excellent!! I very much appreciate your efforts in putting all this together and making it so readily available–very kind of you!
Will this material be available in the future in some “archived” basis or do I need to print off now what I may need in the future? Also, I would like to talk to you about a few things. Please call me at the number below when you get some time–no rush.
Again, thanks for all this good information and a very good class today. Unfortunately I will have to leave early–pick up my son from UCLA and go to a Laker game :)
Have a good rest of the day and a safe trip home
Vic Hausmaninger
949-833-2815

]]> Comment on Passthrough Entities – Advanced (October 20) by CPA CPE http://cpematerials.com/blog/2009/10/20/passthrough-entities-advanced-october-20/comment-page-1/#comment-8 CPA CPE Tue, 20 Oct 2009 14:20:25 +0000 http://cpematerials.com/blog/?p=111#comment-8 Excellent material! thanks for posting this. Excellent material! thanks for posting this.

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