Exhibit 8-1
(Return to Partnership Audit
Technique Guide Chapter 8)
Recourse
COD: IRS section 61(a)(12)
GAIN: IRS section 61(a)(3)
Taxpayer still owns Property
Yes
No
COD
Non-recourse
Quality for IRC section 108
Exclusion
COD
Debt-FMV=COD
Sale (not COD)
Amt. Realized=Debt
Debt-A/B=Gain or
Loss
Insolvent
Bankrupt
QRPBI
Tax Attribute
Reduction
Basic Sec. 1017
Reduction
SALE
FMV-A/B=Gain or Loss