Finance & markets · 13/08/2010

Application of Section 108(i) to Partnerships and S Corporations

The IRS is issuing temporary regulations to clarify the application of section 108(i) of the Internal Revenue Code to partnerships and S corporations regarding the deferral of discharge of indebtedness income and original issue discount deductions. These regulations affect partnerships and S corporations with respect to reacquisitions of applicable debt instruments from December 31, 2008, to January 1, 2011.