Do you have to report liquid assets as taxable income?
1. Do you have to report liquid assets as taxable income?
If I buy a bond or CD on the secondary market, for less than what it is worth, m
must I pay tax on the difference? For example, if somebody owns a $10,000 CD
, and he files for Chapter 7 bankruptcy, and I buy his CD for $7,000. Do I have
to pay income tax on the remaining $3,000? Please cite federal tax law to ba
ck up your answer, whichever answer you choose.
SOLUTION
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