[USER]

A friend of mine messed up big time and now has a $70K tax bill for 2024….The taxable income ($300K) comes almost entirely from short-term capital gain from selling stocks….and he doesn’t have access to those gains anymore either.

Is there anyway to reduce the tax bill? Any programs? Bankrupcy?

[Don]

IRS payment plan, maybe you have other losses/contributions to offset the gains?

Short term should count as regular income tax wise so maybe max out retirement?

[Shawn]

Does that mean there is a large loss in 2025? Get on a payment plan and get to work.

If you have a large loss at least 2025 taxes will be low.

[Robert]

I would consult a good tax, lawyer; or good tax CPA. My bankruptcy class at law school was back in the fall of 1997… And I’m almost certain the bankruptcy laws have changed significantly since that time.

[Jenn]

IRS payment plan is the only way.
Guess your buddy went gambling and lost the gains?

[Talia]

Unfortunately bankruptcy does not forgive taxes. I would recommend speaking to a CPA (not a tax preparer).

My dad & brother are CPAs and recently had a client who’s daughter was day trading and ended up with $100K+ in taxes – sadly there wasn’t much that they could do to help other than get her set up on an IRS payment plan.

[Author]

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