In this article, Johnson and Harmon argue that real estate lessors, developers, and dealers who realize cancellation of debt income attributable to acquisition debt for real property should be able to avail themselves of the exclusion for the discharge of qualified real property business indebtedness. Accordingly, they urge the IRS to clarify the definition of real property used in a trade or business for purposes of section 108(a)(1)(D).
This article is one of a series of proposals sponsored by the California Bar Association and presented to various policymakers and government officials. However, the comments in it reflect the individual views of the authors who prepared them and do not represent the position of the State Bar of California or of the Los Angeles County Bar Association.
To read this article in full, please click here to download a PDF copy.
