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Discussion:Partnership Bankruptcy - COD Income

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Discussion Forum Index --> Advanced Tax Questions --> Partnership Bankruptcy - COD Income


Discussion Forum Index --> Tax Questions --> Partnership Bankruptcy - COD Income

R2 (talk|edits) said:

3 October 2011
Partnership files Chapter 7 bankruptcy. Each partner realizes $250,000 in COD income as a result of the BK. I need to confirm that, under Internal Revenue Code ยง 108(d)(6), the $250,000 in COD income is not excludible under the bankruptcy exclusion since none of the partners filed bankruptcy.

DaveFogel (talk|edits) said:

3 October 2011
Not necessarily. For example, in a group of cases, the bankruptcy court had assumed jurisdiction over individuals when the petition had been filed by a general partnership. Gracia v. Commissioner, T.C. Memo. 2004-147; Mirarchi v. Commissioner, T.C. Memo. 2004-148; Price v. Commissioner, T.C. Memo. 2004-149; Martinez v. Commissioner, T.C. Memo. 2004-150.

R2 (talk|edits) said:

3 October 2011
Thanks Dave.

Ckenefick (talk|edits) said:

3 October 2011
That's pretty interesting.

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