Section 16.1 Introduction

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

I. (§16.1) Introduction

Federal income tax issues arise in virtually every bankruptcy proceeding. Unfortunately, few practitioners fully understand the tax implications of transactions undertaken while their clients are under the jurisdiction of a bankruptcy court in a Title 11 proceeding. The purpose of this chapter is to introduce practitioners to the most common income tax issues arising in bankruptcy, including:

the tax consequences of discharge-of-indebtedness income; the effect of federal income...