AG2011. Tax Issues Associated With Financially Distressed Clients

Market prices, trade issues, virus-related marketing problems and other matters have put numerous producers in a financial "squeeze." This session examines how the tax practitioner can aid clients in financial distress from a tax perspective as well as a broader non-tax perspective.

Learning Objectives:

• 1. Learn how to detect the signs that a farm/ranch client is in financial difficulty before it shows up on the tax return.
• 2. Understand the possible state law procedures for farm clients subject to foreclosure and the how to perform the tax calculations for deprioritizing taxes for a client in Chapter 12 bankruptcy.
• 3. Understand the difference why the election to close the debtor's tax year matters, and the tax treatment of discharge of indebtedness income.