Richmond County GA Bankruptcy attorneys – Tax debt and bankruptcy
Taxes and Bankruptcy in Augusta Georgia
A independent estate, for tax purposes, is not established for a person who files a petition under Chapter 12 or 13 of the Federal Bankruptcy Code. The individual, should continue to submit the same federal income tax return that was filed before the filing of the bankruptcy petition.
On the return, one should report all earnings received in the whole year and deduct all permitted expenses. You must not include any debt discharged as a result of bankruptcy in income on the return. However, you should reduce certain losses, credits or basis in property by the amount of forgiven debt.
If you are an individual debtor in a chapter 13 wage earners plan, you must not include as income on the return any interest earned on amounts held in trust accounts when awaiting distribution to your creditors. The interest is not available either to you or to your creditors. It will be available only to the trustees, and is taxable to the trustee as his or her individual income.
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We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.
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