[Meddik]

I know parts of the Ninja book (a mortgage debt forgiveness counting as income and not a basis reduction for example) say to go with the changes that were there when 2014 started. As in we ignore the changes that Congress made retroactively in December of 2014.

But while doing MCQs, I’ve had problems that have an explanation stating “This originally expired in tax year 2013, but was extended in December 2014 by the U.S. Congress for tax year 2014.”

So are we supposed to follow the retroactive changes made by Congress in Dec 2014? Or would these questions have technically been wrong on the actual exam for having done so?

FAR - 86
REG - 83
AUD - 97
BEC -

[SIMmer Down]

That is outside the scope of your exam. For purposes of the exam, the only thing you need to know about debt forgiveness/relief of debt is that it is included in gross income.

[Author]

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