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PDtax
PDtax, Master's Degree
Category: Business and Finance Homework
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Experience:  MBA/CPA, Former college instructor and tutor.
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May a buyer elect to exclude income from cancellation of

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May a buyer elect to exclude income from cancellation of qualified real property business debt? No, if the amount of the buyer's tax attributes exceeds the income from cancellation of qualified business debt. Yes, but the amount of the exclusion is limited
to the excess of the outstanding principal amount minus the FMV of the property. Yes, but only if the buyer's total net worth is exceeded by their total liabilities. Yes, but the amount of the exclusion is limited to the buyer's total depreciable basis in
all business property.
Submitted: 2 years ago.
Category: Business and Finance Homework
Expert:  PDtax replied 2 years ago.

Hi from Just answer. I'm PDtax, and will assist.

Expert:  PDtax replied 2 years ago.
The answer is:
Yes, but the amount of the exclusion is limited
to the excess of the outstanding principal amount minus the FMV of the property.
a link to the solution used: https://books.google.com/books?id=QeRCjy02DaYC&pg=PT156&lpg=PT156&dq=May+a+buyer+elect+to+exclude+income+from+cancellation+of+qualified+real+property+business+debt?&source=bl&ots=C-SZt69i5V&sig=S3niJ-gKxJqs6_9baTh0DaareYE&hl=en&sa=X&ved=0CDUQ6AEwA2oVChMIgtGGo-2uxwIVBtKACh0pkgCU#v=onepage&q=May%20a%20buyer%20elect%20to%20exclude%20income%20from%20cancellation%20of%20qualified%20real%20property%20business%20debt%3F&f=false
Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.

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