Forgiveness of Debt

 
 
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 The debt forgiveness rules are more complex and include a specific ordering that the forgiven amount must be applied against (tax items such as loss carryforwards is outlined in the Income Tax Act.).
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Subject to some relieving provisions, the rules also require that some or all of the forgiven amount left over after reducing tax pools and balances be included in the debtor’s taxable income. A complete analysis of these new rules is beyond the scope of this publication, and a detailed analysis would be required for each client’s situation.

 
 
 
 
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For more information about the content of this document, contact Joel Bokenfohr.
This document is maintained by Nicole Halvorson.
This information published to the web on July 23, 2014.