[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-304717-105":3,"detail-sidebar-cat-1-en-105":80,"doc-detail-304717-en":126},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","aghopp-webinar-tax-consequences-in-mortgage-foreclosure-cases","AGHOPP Webinar - Tax Consequences in Mortgage Foreclosure Cases","","Webinar slides presented by Elizabeth Maresca (Fordham Law School) address U.S. tax consequences arising from mortgage foreclosure and other cancellation of debt (COD) events. Topics include general rules for COD income versus repayment obligations, key information return forms (Form 1099A and 1099C), and recognition considerations in HAMP-related income. The material also outlines filing and amendment approaches for tax returns, provides foreclosure recourse vs. nonrecourse examples, and summarizes statutory exclusions under IRC §108, including bankruptcy, insolvency, and qualified principal residence indebtedness (QPRI), with key limits and definitions.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/presentations/","Presentations",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/aghopp-webinar-tax-consequences-in-mortgage-foreclosure-cases/304717/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/aghopp-webinar-tax-consequences-in-mortgage-foreclosure-cases/304717.png","ImageObject",442,249,{"name":42,"@type":43},"Đào","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-29","2026-09-19",true,{"@type":52,"interactionType":53,"userInteractionCount":33},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"How is cancellation of debt (COD) generally treated for tax purposes?","Question",{"text":62,"@type":63},"The slides explain that gross income includes income from cancellation of debt (discharge of indebtedness). The cancellation/discharge of the obligation to repay creates income because the taxpayer gains wealth from being released from the obligation.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"What distinguishes recourse debt from nonrecourse debt in foreclosure regarding COD income?",{"text":67,"@type":63},"For recourse debt, foreclosure can create both gain or loss on disposition and potential COD income. For nonrecourse debt, discharge in foreclosure or deed back results in gain or loss on disposition, but no COD income; however, COD income can arise in a nonrecourse loan modification.",{"name":69,"@type":60,"acceptedAnswer":70},"What exclusions from gross income under IRC §108 are covered in the webinar?",{"text":71,"@type":63},"The slides summarize exclusions for bankruptcy cases, insolvency, qualified farm indebtedness, qualified real property business indebtedness, and qualified principal residence indebtedness (QPRI) discharged before January 1, 2014, along with related limits and definitions such as the insolvency worksheet concept.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},304717,1790465100,{"code":4,"msg":81,"data":82},"success",[83,87,92,97,102,107,112,117,122],{"id":84,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":85,"slug":86},11,90,"presentations",{"id":88,"doc_module":22,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},12,"Resumes",80,"resumes",{"id":93,"doc_module":22,"doc_module_name":25,"category_name":94,"show_sort_weight":95,"slug":96},14,"Invoices",70,"invoices",{"id":98,"doc_module":22,"doc_module_name":25,"category_name":99,"show_sort_weight":100,"slug":101},15,"Posters",60,"posters",{"id":103,"doc_module":22,"doc_module_name":25,"category_name":104,"show_sort_weight":105,"slug":106},16,"Social Media",50,"social-media",{"id":108,"doc_module":22,"doc_module_name":25,"category_name":109,"show_sort_weight":110,"slug":111},17,"Forms",40,"forms",{"id":113,"doc_module":22,"doc_module_name":25,"category_name":114,"show_sort_weight":115,"slug":116},18,"Letters",30,"letters",{"id":118,"doc_module":22,"doc_module_name":25,"category_name":119,"show_sort_weight":120,"slug":121},21,"Paper Templates",5,"papers-templates",{"id":123,"doc_module":22,"doc_module_name":25,"category_name":124,"show_sort_weight":4,"slug":125},158,"General","general-158",{"code":4,"msg":81,"data":127},{"doc_id":78,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":84,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":33,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":141},1374402968488,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","2/4/2014  \nPresenter: Elizabeth Maresca  \nFordham Law School  \nFebruary 5, 2104 © Elizabeth Maresca 1  \n\n| |\n| --- |\n| Today’s Topics\u003Cbr>I. General Rules:\u003Cbr>􀂾 Income from discharge of indebtedness\u003Cbr>􀂾 exemptions and exclusions\u003Cbr>II. Information Returns\u003Cbr>􀂾 Form 1099A & 1099C\u003Cbr>III. Some HAMP income recognition rules\u003Cbr>IV. Tax Returns\u003Cbr>􀂾 Filing & Amending\u003Cbr>V. Examples\u003Cbr>VI. Resources\u003Cbr>February 5, 2104 © Elizabeth Maresca 2 |\n\n2/4/2014  \n| |  |\n| --- | --- |\n| General Rules\u003Cbr>Cancellation of Debt-\u003Cbr>􀁹 Gross income includes income from cancellation of debt (COD) (a.k.a. discharge of indebtedness (DOI))\u003Cbr>􀁹 IRC § 61(a)(12) & Kirby Lumber (S. Ct. 1931)\u003Cbr>􀁹 Loans are not income because of the corresponding obligation to repay\u003Cbr>􀁹 The cancellation/discharge of the obligation torepay is income because the taxpayer has an increase in wealth due to the release of the\u003Cbr>obligation\u003Cbr>February 5, 2104 © Elizabeth Maresca | 4 |\n\n2/4/2014  \n\n| |\n| --- |\n| Cancellation of Debt\u003Cbr>Example:\u003Cbr>Taxpayer A borrows $10,000 from Bank\u003Cbr>X in 2008. When the loan comes due in 2009, Taxpayer Ais able to repay only $8,000 . Bank X accepts the $8,000 as full satisfaction of the loan. Thus, banks discharges the remaining $2,000 . Taxpayer A has $2,000 of cancellation of debt (COD) income, aka discharge of indebtedness (DOI) income.\u003Cbr>February 5, 2104 © Elizabeth Maresca 5 |\n\n\n| |\n| --- |\n| Income from Cancellation of debt can arise in various contexts, including:\u003Cbr>􀁹 Cancellation of credit card debt\u003Cbr>􀁹 Cancellation of automobile debt\u003Cbr>􀁹 Cancellation of student loan debt\u003Cbr>􀁹 Cancellation of home mortgage principal, with or without transfer of property (e.g., in a foreclosure or a loan modification or workout) .\u003Cbr>February 5, 2104 © Elizabeth Maresca 6 |\n\n2/4/2014  \n\n| |\n| --- |\n| Cancellation of Recourse Debt and Gain/Loss on Disposition\u003Cbr>􀁹 Recourse debt in a foreclosure:\u003Cbr>􀁹 gain or loss on the disposition AND potential COD income.\u003Cbr>􀁹 IRC § 121 – gain on sale of principal residence is excluded from taxation up to $250,000\u003Cbr>􀁹 $500,000 excluded for married filing joint return\u003Cbr>􀁹 Recourse debt in a loan modification:\u003Cbr>􀁹 no disposition, but possibly COD income because of reduction in the principal amount of the loan.\u003Cbr>February 5, 2104 © Elizabeth Maresca 7 |\n\n\n| |\n| --- |\n| Cancellation of Nonrecourse Debt and Gain or Loss on Disposition\u003Cbr>􀁹 Discharge of nonrecourse debt in a foreclosure, deed back, etc:\u003Cbr>􀁹 gain or loss on disposition, but no COD income.\u003Cbr>􀁹 Realization event occurs and amount realized is the full amount of the debt. Taxpayer has income / loss as per\u003Cbr>basis and amount realized\u003Cbr>􀁹 Discharge of nonrecourse debt in a loan modification:\u003Cbr>􀁹 COD income can arise.\u003Cbr>**See, Rev. Rul. 91-31 & Rev. Rul. 92-99.\u003Cbr>February 5, 2104 © Elizabeth Maresca 8 |\n\n2/4/2014  \n\n| |\n| --- |\n| IRC § 108(a)\u003Cbr>Exclusions from gross income\u003Cbr>(1) IN GENERAL. Gross income does not include any amount which …would be included in gross income by reasons of discharge of indebtedness of the taxpayer if\u003Cbr>(A) the discharge occurs in a title 11 case (bankruptcy),\u003Cbr>(B) the discharge occurs when the taxpayer is insolvent,\u003Cbr>(C) the indebtedness discharged is qualified farm indebtedness,\u003Cbr>(D) in the case of a taxpayer other than a C corporation, the indebtedness discharged is qualified real property business indebtedness, or\u003Cbr>(E) the indebtedness discharged is qualified principal residence indebtedness which is discharged before January 1, 2014.\u003Cbr>February 5, 2104 © Elizabeth Maresca 9 |\n\n\n| |\n| --- |\n| Statutory Exclusions IRC § 108\u003Cbr>􀁹 Detailed Explanations of the 3 following exclusions are discussed next\u003Cbr>1. Bankruptcy\u003Cbr>2. Insolvency\u003Cbr>3. QPRI – qualified principal residence indebtedness\u003Cbr>February 5, 2104 © Elizabeth Maresca 10 |\n\n2/4/2014  \n\n| |\n| --- |\n| Bankruptcy exclusion IRC § 108(a)(1)(a)\u003Cbr>􀁹 Applies when a bankruptcy filing results in discharge and release of liability\u003Cbr>􀁹 discharge MUST occur by ","cbCailjfxu2ZJlrO","https://ap.wps.com/l/cbCailjfxu2ZJlrO","pdf",959415,27,"English","# Today’s Topics\n## General Rules: Income from discharge of indebtedness\n## Information Returns\n## Some HAMP income recognition rules\n## Tax Returns: Filing & Amending\n## Examples\n## Resources\n# Cancellation of Debt: General Rules\n## Income from Cancellation of Debt and COD/DOI Concepts\n## Cancellation of Debt Example\n# Cancellation of Recourse Debt and Gain/Loss on Disposition\n# Cancellation of Nonrecourse Debt and Gain or Loss on Disposition\n# IRC §108(a): Exclusions from Gross Income\n## Bankruptcy exclusion\n## Insolvency exclusion\n## Definition of Insolvency (IRC §108(d)(3))\n## Qualified Principal Residence Indebtedness (QPRI)","[{\"question\":\"How is cancellation of debt (COD) generally treated for tax purposes?\",\"answer\":\"The slides explain that gross income includes income from cancellation of debt (discharge of indebtedness). The cancellation/discharge of the obligation to repay creates income because the taxpayer gains wealth from being released from the obligation.\"},{\"question\":\"What distinguishes recourse debt from nonrecourse debt in foreclosure regarding COD income?\",\"answer\":\"For recourse debt, foreclosure can create both gain or loss on disposition and potential COD income. For nonrecourse debt, discharge in foreclosure or deed back results in gain or loss on disposition, but no COD income; however, COD income can arise in a nonrecourse loan modification.\"},{\"question\":\"What exclusions from gross income under IRC §108 are covered in the webinar?\",\"answer\":\"The slides summarize exclusions for bankruptcy cases, insolvency, qualified farm indebtedness, qualified real property business indebtedness, and qualified principal residence indebtedness (QPRI) discharged before January 1, 2014, along with related limits and definitions such as the insolvency worksheet concept.\"}]","AGHOPP Webinar - Tax Consequences in Mortgage Foreclosure Cases | PDF",1789816486,9]