WASHINGTON, D.C. - (Mealey's) A divided U.S. Supreme Court ruled 5-4 Monday that the federal income tax liability that resulted from a debtor's
post-petition farm sale is not "incurred by the estate" for the
purposes of 11 U.S. Code Section 503(b); therefore, it is neither collectible...
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Are farmers who sell their
farms while in chapter 12 bankruptcy required to pay capital gains tax to the
IRS or can they use the sale proceeds to pay other creditors? Professor Kenneth
N. Klee examines the Supreme Court...