RRA changes affecting discharge of indebtedness income.
The Revenue Reconciliation Aet of 1993 (RRA RRA Registered Record Administrator. ) amended See. 108 to provide an eleetion for the exclusion of diseharge of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421.
2. income related to qualified real property business indebtedness. The provision is effective for discharges after 1992.
The election must be made on revised Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), issued in December 1993. The revised form includes a new check-off for making the election, with an additional line to indicate the amount by which the basis of depreciable depreciable
Of, relating to, or being a long-term tangible asset that is subject to depreciation. property is to be reduced.
In a separate amendment, the RRA expanded the list of tax attributes that are reduced in the case of discharge of indebtedness to include minimum tax credits and passive activity loss and credit carryovers. The effective date of the provision is for tax years beginning after 1993. Because of this later effective date, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. will issue another revised Form 982 before January 1995. The December 1993 revised Form 982 should not be used for any discharge of indebtedness in tax years beginning after 1993.
From Jim Banks, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , Washington, D.C.