• Case Law - QuickPress

    Debtors Must Pay Capital Gains Tax in Full, Supreme Court Holds

    You can’t avoid paying taxes on assets you sell after a bankruptcy.  At least if you’re a farmer.  Sally P. Schrieber at the Journal of Accountancy reports The U.S. Supreme Court ruled Monday that farmers who sold farm assets during a bankruptcy reorganization under Chapter 12 of the Bankruptcy Code were liable for the full amount of the capital gains tax that resulted from the sale (Hall, Sup. Ct. Dkt. No. 10-875 (U.S. 5/14/12), aff’g 617 F.3d 1161 (9th Cir. 2010)). In an opinion that affirmed a Ninth Circuit decision and resolved a split in the circuits, a divided Supreme Court (in an…