Definition of self liquidating debt
An unsuspecting and often financially challenged investor base can fall victim to good salesmanship and misrepresentation.This announcement delays, until further notice, the enrollment renewal period under section 10.6(d) of the regulations governing practice before the IRS, which are reprinted as Treasury Department Circular No.Whereas revenue bonds are secured by specific revenue sources, as such tolls (for highways) and a sinking fund dedicates money to be set aside for debt settlement.There are also a number of scams that call themselves "self-liquidating loans" or "self-liquidating assets." Most of these use the vagaries surrounding 'self-liquidating' to give the appearance of less risk or more security than is justified.Although technically, few loans are actually legally named "self-liquidating," this is more appropriately called bankers slang or a feature of a loan or credit facility.
Then when business slows down the company will have less of a need for borrowed funds to finance short-term assets like inventory accounts – the need for financing will decline as the need for inventory declines. “Analysis for Financial Management”, Mc Graw-Hill Irwin, New York, NY, 2007.Section 108(i) allows a taxpayer to defer discharge of indebtedness income (and in certain cases, deductions for original issue discount) arising from a reacquisition of an applicable debt instrument that occurs in 2009 or 2010 for a four or five taxable-year period (unless an acceleration event occurs earlier).Once the deferral period ends, taxpayers take into account the deferred income and deductions ratably over a five taxable-year period.The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest.It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis.
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