The Supreme Court has recently made a ruling that a farming family must pay a bankruptcy tax on the sale of their farm.
The ruling was made on Monday when the court voted 5-4 that the family must pay the IRS for the bankruptcy sale of their farm in Wilcox. The family was forced to sell their 360-acre farm for $960,000 in order to cover all of their debts.
The taxes on this sale were nearly $26,000 and the family was hoping that this would count toward the bankruptcy filing, meaning that they would pay for part and the rest would be discharged by the court. The IRS stated that all taxes on the sale had to be paid and the Supreme Court sided with them.
If you are facing large amounts of debt, and you would like to learn more about how to prepare for Chapter 7 bankruptcy, contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC today.