Discussion:Insolvency question.

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Discussion Forum Index --> Advanced Tax Questions --> Insolvency question.


Discussion Forum Index --> Tax Questions --> Insolvency question.

Taxesido (talk|edits) said:

28 July 2009
I understand how to figure insolvency but I have one question about what needs to be included from retirement plans. Is it only the cash-in value on the date of the debt relief or does there need to be some kind of annuity calculation done? This is a retirement plan that has very little cash value but will have a long term annuity pay out when the client gets to retirement age (which he is not even close to at this point).

Thanks in advance for any help on this.

Taxteck (talk|edits) said:

28 July 2009
When calculating the insolvency amount, I use the IRS actuarial tables to value annuities and defined benefit plans.

Michaelg (talk|edits) said:

28 July 2009
How about including nonrecourse debt from a passthru entity in the insolvancy calc?

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