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Tuesday, August 31, 2010/10:00 am PT
CLE: Tax Pitfalls and Opportunities in Real Estate Workouts
Location: Via telephone
Additional Info: Oregon State Bar
Cost: $65
Description:
One of the most consequential and often negative outcomes of a real estate workout is the tax consequences. The property owner or developer may negotiate a workout with a creditor to reduce the principal amount or restructure periodic payments, but it’s often at the cost of substantial adverse tax consequences, including the recognition of substantial cancellation of indebtedness income that scuttles the goal of financial relief.
Structure in this area is paramount—how you structure and time the workout can make all the difference in how much income the property owner must recognize, if any, and when.
This program provides real estate and business transactional counsel who are not tax specialists with a guide to planning for optimal tax outcomes in real estate workouts.
- Planning to avoid bad tax outcomes in real estate workouts
- Amount of cancellation of indebtedness (COD) income depending on whether the debt was recourse or nonrecourse
- Techniques to defer or exclude COD income for the property owner
- Tax consequences of short sales versus foreclosures and insolvency versus bankruptcy
- Debt-for-equity exchanges, transfers to lenders, abandonment, forfeiture, and like-kind exchanges
Speaker:
Lou Weller is a principal in the San Francisco office of Deloitte Tax LLP and serves as National Director of Real Estate Transaction Planning. He has extensive experience designing and implementing strategies for real estate acquisitions, transfers, exchanges, leases, financing, and workouts. Before joining Deloitte, he practiced real estate, business, and tax law for more than 20 years. He formerly served as the chair of the Real Estate Committee of the ABA’s Tax Section and is a Fellow of the American College of Tax Counsel. He is coauthor of the treatise Real Property Exchanges (3rd ed.), published by California Continuing Education of the Bar. Mr. Weller received J.D. and Masters in Public Policy from the University of California at Berkeley.
