Course Specifics
CPE Credit: 2 Hours
Field of Study: Taxes, Federal Tax
Course Level: Basic
Prerequisite: None
Advance Preparation: None
Delivery Method: Self-Study
IRS Program Number: UBWMF-T-00330-25-S
CTEC Course Number: 6209-CE-00242
NASBA Sponsor ID: 116347
100 Minutes
Debt Cancellation
Who Should Attend?
CPAs, EAs, CRTPs
Course Description
Debt cancellation can carry significant and often complex tax consequences, particularly during times of economic stress. This course explains the rules for including cancellation of debt (COD) income in gross income and explores the circumstances under which COD income may be excluded. Through detailed examples, it addresses exclusion criteria, income inclusion calculations, and the impact of tax attribute reduction—especially for S corporations and partnerships.
Learning Objectives
- Recognize the COD income rules
- Identify circumstances in which COD income has to be included and those in which it may be excluded from your clients’ gross incomes
- Classify how to report both the income resulting from the cancellation of debt and the tax attribute reduction necessary when an exclusion applies
- Define key terms such as income and insolvency
Last Modified: 8/1/2025
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