Treasury Regulations · 26 CFR
§ 1.108-4. Election to reduce basis of depreciable property under section 108(b)(5) of the Internal Revenue Code .
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 108
Cite as 26 CFR § 1.108-4
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- October 22, 1998 by T.D. 8787
- Issued under
- 26 U.S.C. § 108
- Length
- 178 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 2
¶(a) Description. An election under section 108(b)(5) is available whenever a taxpayer excludes discharge of indebtedness income (COD income) from gross income under sections 108(a)(1)(A), (B), or (C) (concerning title 11 cases, insolvency, and qualified farm indebtedness, respectively). See sections 108(d)(2) and (3) for the definitions of title 11 case and insolvent. See section 108(g)(2) for the definition of qualified farm indebtedness.
¶(b) Time and manner. To make an election under section 108(b)(5), a taxpayer must enter the appropriate information on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), and attach the form to the timely filed (including extensions) Federal income tax return for the taxable year in which the taxpayer has COD income that is excluded from gross income under section 108(a). An election under this section may be revoked only with the consent of the Commissioner.
¶(c) Effective date. This section applies to elections concerning discharges of indebtedness occurring on or after October 22, 1998.
[T.D. 8787, 63 FR 56562, Oct. 22, 1998]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Cited by 2 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 8787 (63 FR 56562)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Items Specifically Excluded From Gross Income
Nearby sections
- § 1.106-1 Contributions by employer to accident and health plans.
- § 1.107-1 Rental value of parsonages.
- § 1.108-2 Acquisition of indebtedness by a person related to the debtor.
- § 1.108-3 Intercompany losses and deductions.
- § 1.108-4 Election to reduce basis of depreciable property under section 108(b)(5) of the Internal Revenue Code .
- § 1.108-5 Time and manner for making election under the Omnibus Budget Reconciliation Act of 1993.
- § 1.108-6 Limitations on the exclusion of income from the discharge of qualified real property business indebtedness.
- § 1.108-7 Reduction of attributes.
- § 1.108-8 Indebtedness satisfied by partnership interest.