Claiming Vehicle Ownership Expense

[gregorino]

I'm doing a 13 Pro Se soon and have read that the National Assn of Consumer Bankruptcy Attorneys has filed briefs in support of the argument that vehicle ownership expenses should be allowed even where none exist because cars do wear out. I have a 1999 Escort with 105K and a 02 Caravan with 65k on it. Both are paid for, and our credit is shot and we have no cash (hence the Pro Se) to buy something, sooooo it would be stellar to have the court recognize that we'll need at least one or two new cars in the next five years. Does anyone have any experience claiming this expense? Thanks!

[HHM]

Not sure about the ownership cost issue, but for cars older than 6 years or have more than 80,000 miles, the IRS standards allow an additional $200 in vehicle operating cost.

[gregorino]

Not sure about the ownership cost issue, but for cars older than 6 years or have more than 80,000 miles, the IRS standards allow an additional $200 in vehicle operating cost.

REALLY??? I haven't seen that anywhere...So, in addition to the $402 for 2 vehicle's operating expenses on line 27A, I could just add in another $400, since both vehicles are 6 years or older? Wonder why that isn't on the IRS Loal Standards site....Thanks!

[HHM]

That little provision is so buried in the IRM (Internal Revenue Manual) most people don't know about it, but I am pretty sure the BK courts allow the extra operationg expense. It is mentioned here
5.8.5.6.3 (09-23-2008)
Treatment of Non-Business Transportation Expenses

http://www.irs.gov/irm/part5/ch08s05.html

[gregorino]

Thanks HHM...I just found it on the "Statement of the U.S. Trustee Program's Position on Legal Issues Arising under the Chaper 13 Disposable Income Test" Much Thanks!

[d80indebt]

That little provision is so buried in the IRM (Internal Revenue Manual) most people don't know about it, but I am pretty sure the BK courts allow the extra operationg expense. It is mentioned here
5.8.5.6.3 (09-23-2008)
Treatment of Non-Business Transportation Expenses
http://www.irs.gov/irm/part5/ch08s05.html

That's awesome! Thanks for pointing this out!

[justbroke]

The Trustee Guide shows that the Operating Expense can be increased by $200 (monthly) to cover a motor vehicle at least 6 model years old or 75,000 miles... just as HHM wrote.

The Trustee Guide goes further to read that you can't take the Ownership expense unless you lease or are financing the vehicle.