It’s tax season: don’t forget to write off the deductible expenditures made by your Chapter 13 trustee on your tax return.
Many Chapter 13 plans are paying mortgage arrears (which are almost exclusively deductible interest), taxes of some sort, or business expenses. These items should be deductible to you.
You can get a report from your Chapter 13 trustee of the distributions she’s made during 2008. Many trustees have this information on line for your convenience. The report will itemize payments made with your money, on your debts.
If you’re in a Chapter 13 and have a bushel of lemons, make lemonade, and reduce your current tax burden.
missca says
April 2, 2010 at 12:12 pm(a) I am wondering whether or not monthly chapter 13 payments are tax deductible before the trustee makes her distribution or before the plan is confirmed.
(b) Similarly, are expenses related to personal bankruptcy tax deductible, e.g. cost of court reporter transcripts, PACER use fees, court filing fees, attorney’s fees, etc?
(c) The same as above, in case, if the sole proprietorship company is also in Ch 13 bankruptcy.
(d) Please refer to any statute, case that support your statement that ‘don’t forget to write off the deductible expenditures made by your Chapter 13 trustee on your tax return. ‘
Thank you very much