American Recovery and Reinvestment Tax Act of 2009 Temporarily Defers Cancellation of Indebtedness Income for Debt Repurchases, Exchanges, Cancellations and Modifications
This memo summarizes the provision in the American Recovery and Reinvestment Tax Act of 2009 that would add Section 108(i) to the Internal Revenue Code of 1986, as amended. Section 108(i) would allow for the temporary deferral of cancellation of indebtedness income arising from debt repurchases, exchanges, cancellations and modifications.