Can You Discharge Capital Gains Taxes in Bankruptcy
My question involves bankruptcy in the state of: NH
Our LLC has virtually no debt except mortgage and an SBA Guarantee on a grant, and we have no personal debt. We will proceed with a deed in lieu of foreclosure to clear the business. I understand we will be assessed capital gains tax on the 'gain' - is that dischargeable? That is really the major reason to file ch 7. i cant seem to get a straight answer anywhere. thanks.
Re: Can You Discharge Capital Gains Taxes in Bankruptcy
Quote:
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nch
My question involves bankruptcy in the state of: NH
Our LLC has virtually no debt except mortgage and an SBA Guarantee on a grant, and we have no personal debt. We will proceed with a deed in lieu of foreclosure to clear the business. I understand we will be assessed capital gains tax on the 'gain' - is that dischargeable? That is really the major reason to file ch 7. i cant seem to get a straight answer anywhere. thanks.
Taxes are generally not dischargable for three years.
Re: Can You Discharge Capital Gains Taxes in Bankruptcy
Quote:
Quoting
nch
My question involves bankruptcy in the state of: NH
Our LLC has virtually no debt except mortgage and an SBA Guarantee on a grant, and we have no personal debt. We will proceed with a deed in lieu of foreclosure to clear the business. I understand we will be assessed capital gains tax on the 'gain' - is that dischargeable? That is really the major reason to file ch 7. i cant seem to get a straight answer anywhere. thanks.
Are you sure that you don't mean cancellation of debt income rather than capital gains? A deed in lieu would not necessarily result in any capital gain. It might very well result in a capital loss.