When a corporation has cancellation-of-debt relief in a "Type G" reorganization,the corporation reduces its benefits in tax attributes such as NOLs and business credits.

Question

Quizplus · Accepted Answer

When a corporation receives cancellation-of-debt relief in a "Type G" reorganization, it must reduce its tax attributes such as net operating losses (NOLs) and business credits by the amount of the relief. This is known as a reduction in tax attributes.

When a Corporation Has Cancellation-Of-Debt Relief in a "Type G