Legal Question in Bankruptcy in California

can capital gains tax be included in Ch 7?

I purchased my house in 2001 for 205k.

I did a refi in 2004 and pulled out 70k cash.

My house is presently valued at 380k, with about 100k in equity.

If I sell my house, and give whatever remains above 50k to creditors, and do not purchase another house, I know I will have capital gains tax based on $175k profit. Can that tax be included in the chapter 7 BK?

Thanks very much.


Asked on 10/05/06, 2:21 pm

1 Answer from Attorneys
Gloria Gong Law Office of G. Gong

Re: can capital gains tax be included in Ch 7?

Not if you file the BK within 3 years of when the tax return was due and was actually filed.

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Answered on 10/05/06, 11:59 pm


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