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Short Tax Year Before Filing Chapter 7?
yes
________________________________
To: cdcbaa@yahoogroups.com
Sent: Monday, May 7, 2012 6:18 PM
Subject: [cdcbaa] Short Tax Year Before Filing Chapter 7?
All you bankruptcy tax mavens:
Natural person Debtor sold some highly appreciated stock earlier this year.
But the proceeds weren't enough to bail him out of the financial problems. He has to file Chapter 7 (and not eligible for Chapter 13).
Come tax time he will owe a bunch of capital gains for 2012.
Can debtor file a tax return for the short year ending on the Petition date, and thereby make that capital gains tax a pre-petition debt, subject to being paid on a priority basis out of the assets in the estate?
Citations welcome!
Thanks.
Jason Wallach
jwallach@gladstonemichel.com
yes Jason Wallach <jwallach@gladstonemichel.com> To: cdcbaa@yahoogroups.com Sent: Monday, May 7, 2012 6:18 PM Subject: [cdcbaa] Short Tax Year Before Filing Chapter 7?
All you bankruptcy tax mavens:
Natural person Debtor sold some highly appreciated stock earlier this year.
But the proceeds weren't enough to bail him out of the financial problems. He has to file Chapter 7 (and not eligible for Chapter 13).
Come tax time he will owe a bunch of capital gains for 2012.
Can debtor file a tax return for the short year ending on the Petition date, and thereby make that capital gains tax a pre-petition debt, subject to being paid on a priority basis out of the assets in the estate?
Citations welcome!
Thanks.
Jason Wallach
jwallach@gladstonemichel.com
The post was migrated from Yahoo.
All you bankruptcy tax mavens:
Natural person Debtor sold some highly appreciated stock earlier this year.
But the proceeds weren't enough to bail him out of the financial problems. He has to file Chapter 7 (and not eligible for Chapter 13).
Come tax time he will owe a bunch of capital gains for 2012.
Can debtor file a tax return for the short year ending on the Petition date, and thereby make that capital gains tax a pre-petition debt, subject to being paid on a priority basis out of the assets in the estate?
Citations welcome!
Thanks.
Jason Wallach
jwallach@gladstonemichel.com
The post was migrated from Yahoo.