Augusta GA costs in a Chapter 13 Bankruptcy lawyer

Augusta GA costs in a Chapter 13 Bankruptcy lawyer

Administrative costs in Bankruptcy in Evans Georgia

The bankruptcy estate can take a deduction for administrative costs and any fees assessed. These expenses are normally deductible as itemized deductions subject to the 2% ceiling on miscellaneous itemized deductions. But, administrative expenses attributable to the operation of a trade or business by the bankruptcy estate or the creation of the estates rents or royalties are deductible in calculating the adjusted gross income.

The expenses are subject to disallowance under other rules of the Internal Revenue Code, like disallowing certain capital expenditures, taxes, or expenses concerning tax-exempt interest. Such expenses can only be deducted by the estate, and never by the debtor.

If the administrative expenses of the bankruptcy estate are more than its gross income for the tax year, the excess amount can be carried back 3 years and forward 7 years. The amounts may only be carried back or forward to a tax year of the estate and never to the debtors tax year. The excess amount to be carried back or forward is treated as a net operating loss and must first be carried back to the first year possible.

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