[CLBS] Capital Gains problem

[Aaron Tolson]

I had a client that filed Chapter 7 last year due to a failing business in
Challis.  The 2019 taxes were just done by H&R Block, who decided that all
the depreciation should be added as income and taxed as capital gains due
to the administratively closed business which went back to the secured
creditor, resulting in a $37,000 tax bill to feds and $4840 to the State of
Idaho.  The income for the family was around $14,000 for the whole 2019
year.

Anyone had this happen and know of help for these debtors?  Something seems
fishy to me.
-- 
Aaron J. Tolson
2677 E. 17th St. #300
Ammon, ID. 83406
208-228-5221

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