Bankruptcy Tax Act of 1980

[AI summary unavailable — showing source text] Bankruptcy Tax Act of 1979 - Amends the Internal Revenue Code to exclude from gross income amounts of indebtedness which are discharged either pursuant to bankruptcy, when the taxpayer is insolvent (but only to the extent of such insolvency), or in cases of business indebtedness. Requires the reduction of specified tax attributes by the amount of discharged indebtedness which is excluded from gross income. Specifies that such tax attributes shall be: (1) net operating loss carryovers; (2) carryovers of the investment tax credit, work incentive (WIN) credit, and new jobs credit; (3) capital loss carryovers; and (4) the basis of the debtor's assets, but the basis of such assets shall not be reduced below the basis in the debtor's remaining undischarged liabilities. Provides that the reduction of such tax attributes shall be effected after the determination of the tax imposed upon the debtor is made. Requires the reduction of the basis of business assets of a taxpayer whose qualified business indebtedness has been discharged. Defines "qualified business indebtedness" as indebtedness assumed by a corporation or an individual in connection with property used in a trade or business. Proh…