Topics Covered: Cancellation of indebtedness income; Exclusion of cancellation; indebtedness income under section 108; Debt modification rules; Difference in treatment from foreclosures on non-recourse debt secured by property; Tax treatment of claims in bankruptcy and taxation of bankruptcy estate. Upon completing this course, you should be able to: Explain the difference in tax treatment between cancellation of recourse debt and foreclosures of property securing non-recourse debt; Identify situations when cancellation of indebtedness income may be excluded under section 108; Describe which types of debt modifications are treated as exchanges, and the tax consequences; Explain the tax treatment of claims in bankruptcy and the taxation of the bankruptcy estate; Differentiate situations that would likely result in COD income and eligible for exclusion; Identify cases when discharged debt would not be limited for exclusion; Recognize conditions of insolvency exceptions; Identify whey discharge of indebtedness is included in gross income; Recognize when discharge of debt is considered; Describe when a debt work-out is advantageous to the lender; Identify examples of significant modification to a debt instrument; Recognize when the consequences of transfers of property subject to debt dependency is considered; Differentiate when qualifications for the real property business indebtedness exclusion does not qualify; Identify which is reduced first when reducing tax attributes of a debtor.