Bankr. No.:
89-30038
Chapter:
12
Date of Decision:
December 12, 1989
Issue:
(1) Whether debtor may deduct special use tax liability (Internal Revenue Code ยง 2032A) from the value of estate property for liquidation analysis purposes. (2) Whether debtor may deduct certain income taxes in his liquidation analysis, and if so, in what amount.
Ruling:
(1) Debtor may not deduct potential special use tax liability from the value of his estate due to the unlikelihood of its enforcement and its contingent nature. (2) Debtor may deduct those taxes attributable to his income, but not those of his wife because she is not a party to the bankruptcy, in debtor's liquidation analysis.
Full Bankruptcy Court Decision:
