Bankruptcy
IRS Finalizes Regulations on Section 108 Reduction of Tax Attributes for S Corps
IRC Section 108 provides mandatory relief provisions requiring bankrupt or insolvent taxpayers to exclude debt discharge income (COD income) from gross income. It also provides that certain tax attributes must be reduced by the amount of excluded COD income. If the excluded COD income exceeds the amount of tax attributes available for reduction, then the “excess” COD income disappears with no further tax consequences to the debtor. Special rules apply to S Corps. These rules provide that the mandatory relief provisions apply at the corporate level, including the determination of insolvency. COD income that is excluded from an S Corp’s income under these provisions for. Read More.
Rebuilding a Business From the Ground Up
Many companies must reinvent themselves or sink during the recovery. CNN Money tracks the trials and turnaround of PaverStone , an Ohio-based upscale patio design firm. Launched during a national home-improvement boom, PaverStone was an instant success, designing and building lavish patios for affluent suburban homeowners in Columbus. To keep costs low, Draughon initially used prison inmates in a work-release program as laborers; later he hired and trained his own crews, mostly made up of immigrants from Mexico (all of them documented, he says). Revenues topped $500,000 in 2006. Draughon had a new business, a new house and a new car, plus a. Read More.
Rebuilding a Business From the Ground Up
Many companies must reinvent themselves or sink during the recovery. CNN Money tracks the trials and turnaround of PaverStone , an Ohio-based upscale patio design firm. Launched during a national home-improvement boom, PaverStone was an instant success, designing and building lavish patios for affluent suburban homeowners in Columbus. To keep costs low, Draughon initially used prison inmates in a work-release program as laborers; later he hired and trained his own crews, mostly made up of immigrants from Mexico (all of them documented, he says). Revenues topped $500,000 in 2006. Draughon had a new business, a new house and a new car, plus a. Read More.
CB&H Launches Distressed Asset Recovery Services
The present volume of other real estate owned (OREO) and non-performing assets (NPA) presents an extraordinary challenge to lenders – and traditional solutions do not always apply. Foreclosure actions and online marketplaces often result in inadequate auction bids. Banks with OREO and NPA are often asking more than buyers are willing to pay. However, they often need to maintain their asking price in order to avoid realizing additional REO and loan losses and negatively affecting their overall capital. Attempts to sell the property can often result in additional costs to the bank from removing liens and other expenses. Real estate. Read More.
Recession Driving Consumers to Choose Debit Over Credit
As reported this week in The Washington Post , the recession has brought about a significant change in the consumer marketplace as job worries, changing interest rates, and overspending has many Americans choosing to use debit cards over credit. Visa announced this spring that spending on Visa debit cards in the United States surpassed credit for the first time in the company’s history. In 2008, debit payment volume was $206 billion, compared with credit volume of $203 billion. MasterCard reported that for the first six months of this year, the volume of purchases on its debit cards increased 4.1 percent, to $160 billion,. Read More.
Are You Personally on the Hook if Your Business Goes Under?
The Wall Street Journal reports how many small business owners are dealing with the unexpected personal consequence of a sole proprietorship going under. Whether entering into business for yourself for the first time, or simply reexamining your own plans, be sure to know the full extent of your risk and liability in the face of overwhelming debts. As thousands of business owners are discovering during this downturn, sole proprietors are nearly always forced to file for personal bankruptcy if business debts overwhelm them. As far as a court is concerned, the person and the business are one and the same. Even owners of. Read More.