Rarely is bankruptcy filing contemplated when a special use valuation election of farmland is filed.1 However, financial adversity can overtake a qualified heir or heirs who are responsible for paying the recapture tax either because of reduced farm or ranch income from production or a major catastrophe which results in a filing in bankruptcy.2 Several possible issues may arise, including the effect of bankruptcy on personal liability for the tax benefits from the special use valuation filing.3
Harl, Neil E. and Peiffer, Joseph A.
"Bankruptcy Filing After Special Use Valuation Election,"
Agricultural Law Digest: Vol. 22
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol22/iss10/1