Hall v. United States — Breyer, J., Dissenting

Summary

Justice Breyer dissents, arguing that postpetition capital gains tax claims incurred during Chapter 12 proceedings qualify as administrative expenses under § 503(b) and as priority claims under § 507. Consequently, the amendment to § 1222(a)(2) limiting priority claims for tax debts generated by asset sales applies to such postpetition claims. This reading, he asserts, honors Congress’s intent to ensure farmers are not barred from Chapter 12 reorganization by capital gains taxes arising during the case.