The Transfer Tax Exemption After Piccadilly

Law360, New York (April 30, 2009, 12:00 AM EDT) -- Last year, the U.S. Supreme Court resolved a circuit split and held in Florida Dept. of Revenue v. Piccadilly Cafeterias Inc.[1] that the transfer tax exemption in § 1146(a) of the Bankruptcy Code only applies to transfers that occur after a plan has been confirmed. This decision sent tremors through the bankruptcy bar.

The ability to maximize benefit to the estate often requires a sale of all or substantially all of the assets before a plan is even proposed. If the transfer tax exemption is no...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.