Skip to Content
Help wanted sign
Article

Tackling disappearing debt in nontaxable corporate transactions (Part III)

October 1, 2013 / 1 min read

In this column, we will explore the income tax consequences of debt extinguishment in three types of nontaxable corporate transactions when both the debtor and creditor are members of a consolidated return group:
  1. Transfers to controlled corporations under Code Sec. 351
  2. Subsidiary liquidations under Code Sec. 332
  3. Acquisitive reorganizations under Code Sec. 368(a)
Unless stated otherwise, both the transferor and the transferee corporations are solvent for purposes of this tax column.

Related Thinking

Close up view of a building with intricate architecture
April 28, 2025

Keep the good tax planning rolling: Section 1045 rollover of QSBS

Article 8 min read
People walking in front of the White House.
April 25, 2025

State and local tax advisor: April 2025

Article 15 min read
Video thumbnail
April 22, 2025

The basics of cost segregation

Video 3 min watch