Gordon v. United States (In re St. Francis)

ORDER

MARGARET H. MURPHY, Bankruptcy Judge.

This ease is before the court on Trustee’s motion for determination of tax liability. The facts are undisputed. Both Trustee and Respondent (“IRS”) have filed memoranda of law. For the reasons set forth below, this court concludes Trustee is entitled to compute the estate’s tax liability using 26 U.S.C. § 121 to exclude the capital gain on the estate’s interest in residential real property liquidated by the Chapter 7 Trustee.

STATEMENT OF FACTS

This case commenced January 6, 1997. On August 19, 1997, Trustee sold Debtor’s residence, which was titled…