Legal Opinion
Rott v. Eggar (In Re Knight's Mill, Inc.)
United States Bankruptcy Court, E.D. Michigan
Decided October 29, 1982No. 19-43010PublishedCited by 2 opinions
1Opinion of the Court
MEMORANDUM OPINION AND ORDER
GEORGE E. WOODS, Bankruptcy Judge.
The question before the Court is whether a trustee, who is not operating the bankrupt’s business but merely liquidating a bankruptcy estate, is liable for federal income tax upon interest earned on his deposits of the estate funds. The Court finds that such a trustee does incur income tax liability.
The facts are not in dispute. Knight’s Mill, Inc., the debtor, filed for relief under Chapter 7 on November 20, 1980. Max E. Rott was duly appointed as trustee for the debtor; converted the assets of the debtor’s estate to cash; and…
2Cases cited14 opinions
- Nicholas v. United StatesSupreme Court of the United States · 1966
- In the Matter of Statmaster Corporation, Bankrupt. Larry Gilbert, Trustee, in the Matter of Statmaster Corporation, Bankrupt v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- In Re LoehrDistrict Court, E.D. Wisconsin · 1950
- In the Matter of I. J. Knight Realty Corp., Bankrupt. Appeal of United States of AmericaCourt of Appeals for the Third Circuit · 1974
- United States v. Paul W. Sampsell, Trustee in Bankruptcy of F. P. Newport Corporation, Ltd., BankruptCourt of Appeals for the Ninth Circuit · 1959
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3Cited by2 opinions
- In Re LusterUnited States Bankruptcy Court, N.D. Illinois · 1991
- In re Sapphire SteamshipDistrict Court, S.D. New York · 1984