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WSLG129 – Bankrupt Farmer Sells Farm ? Creditors Get all the Proceeds; He Must Pay the Taxes – 8/20/2012

WSLG129 – Bankrupt Farmer Sells Farm ? Creditors Get all the Proceeds; He Must Pay the Taxes – 8/20/2012 published on No Comments on WSLG129 – Bankrupt Farmer Sells Farm ? Creditors Get all the Proceeds; He Must Pay the Taxes – 8/20/2012

Author: Carol A. Pettit

Pages: 2

In its recent 5-4 decision, the U.S. Supreme Court held that a bankrupt farmer, whose farm was sold to help fund his chapter 12 plan, was personally liable for the income taxes generated by the sale of the farm. That meant that even though the farmer received none of the proceeds of the saleÄthese went to the creditorsÄhe was nonetheless personally responsible for paying the income taxes from the sale out of his own pocket.

 

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