DEBT:  The Four Letter Word of Noncash Transactions

Hands over a plant growing from a pile of coinsI would rather hear ANY four letter word than D.E.B.T. when discussing a noncash transaction.  And a little known fact, Aretha Franklin's original song line wasn't "R.E.S.P.E.C.T... find out what it means to me".... it was "D.E.B.T.... find out how unrelated business income tax and bargain sales will impact me."  I think she should have kept that!

Luckily, debt impacts all assets in the same way except it doesn't.  Real estate debt is different than Partnership debt (LLC, LP) which is different than S-Corp debt which is different than C-Corp debt - that isn't confusing at all.  But luckier still, the impact to the charity is always the same except it is not.  In the "you can't make it up category," there is literally an exception to debt financed income, and exception to that exception, and then, wait for it, an exception to the exception to the exception.  I know!

So attendees will learn:

  • How debt impacts the DONOR with various noncash donations
  • How debt impacts the CHARITY with various noncash donations
  • Debt language like recourse, non-recourse as well as inside debt and outside debt
  • Simple solutions to debt issues
  • Not-so-simple solutions to debt issues
  • General guidelines about how much debt is too much for certain assets where no UBTI exceptions are available

Please join Bryan Clontz, Ph.D., CFP®, AEP®, CAP®,Ryan Raffin, JD, CAP®and Russ Willis, J.D., LL.M., presenting below:

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