Section 108 B 5

Depreciable property prior to reducing any other entity tax attributes.

Section 108 b 5. Income tax basis reduction 6. Passive activity loss and credit carryovers 7. Section 108 financing provides an avenue for communities to undertake larger more costly projects where they may have limited resources to invest in upfront.

If any discharge cancellation or modification of indebtedness of a railroad corporation occurs in a taxable year beginning after december 31 1976 pursuant to an order of a court in a proceeding referred to in section 108 b a or b which commenced before january 1 1960 then. A provision in sec. Section 1951 b 2 b of pub.

Gross income does not include any amount which but for this subsection would be includible in gross income by reason of the discharge in whole or in part of indebtedness of the taxpayer if. 1954 relating to exclusion from gross income as amended by section 2 applies and which occurs before january 1 1982 or which occurs in a proceeding in a bankruptcy case or similar. 108 b 5 allows a taxpayer to elect to first reduce the basis of its depreciable property as an alternative to the general ordering rule for attribute reduction.

In the case of any discharge of indebtedness to which subparagraph a or b of section 108 a 1 of the internal revenue code of 1986 formerly i r c. After reducing the adjusted bases of depreciable property under section 108 b 5 a taxpayer must compute the limitation on basis reductions under section 1017 b 2 using the aggregate of the remaining adjusted bases of property. Where the excluded cod income exceeds the sum of the taxpayer s tax attributes the excess is permanently excluded from the taxpayer s gross income.

If applicable non bankruptcy law an order entered in a non bankruptcy proceeding or an agreement fixes a period within which the debtor may commence an action and such period has not expired before the date of the filing the petition the trustee may commence such action only before the later of 1 the end of such. Foreign tax credit carryovers under section 108 b 5 the debtor entity also has the option to elect to reduce the basis of its. Internal revenue code section 108 b 5 income from discharge of indebtedness a exclusion from gross income.

Section 108 a provides. Section 108 b 5 c provides that the tax attributes under section 108 b 2 are not reduced if a taxpayer makes an election under section 108 b 5. The section 108 loan guarantee program section 108 provides communities with a source of low cost long term financing for economic and community development projects.