when to save reciepts schedule j ?

[Moneypenny]

Hi,

I am planning a bk in about 7 months from now. When do I need to save reciepts for sched j? how far ahead?

I suppose the short answer is as long as possible, but what would be the minimum?

And: what is the maximum. For instance, I have to put up a new roof on the house. Or, I might have other projects that need to be done. When should I do them? If I do them now and show reciepts from 7 months before, is that too far away? Or is sched j really about going forward, so that taking care of house work doesnt help at all?

Basically this question is all about the timing: i guess i have loads of questions about that.

thanks

MMP

ps although I am under the median inc I have a lot of ground to cover on expenses

[music12]

i didn't need receipts. you really need them only if you will be claiming expenses that would raise eyebrows. say, if you said you pay $500 per month on a phone, or something crazy like that.

if you are trying to do these projects so that you won't have much money left in the bank when you file, then you basically can do anything that's not luxury and make sure you do things at market value. that is, if you have your sister do the roof for three times the price somebody else would do it, that would be considered hiding assets with your sister. you might want to do it within 6 months of filing if you want to use it as an expense, but be aware that the trustee knows that you won't be doing another roof so might ignore that expense.

[pa308]

Funny thing is we started saving receipts when we knew we were going to file, and we still do.........Grocery, househould, everythhing.. All in monthly envelopes.............Habits die hard I guess

[liz417]

I started saving all receipts about a year before I filed because I do have some expenses that exceed (by a LOT) the IRS standards. I had my 341 last month and wasn't asked for any... :/

[OhioFiler]

Fixing your roof won't affect your Schedule J at all. Schedule J is CURRENT expenses and roof replacement is not a current expense for you.

[Moneypenny]

ok, got ya-- ohiofiler you always have the answers!

I am still wondering about reciepts for expenses going forward, if i am understanding this right. Part of sched j function is to show what you can or cant pay in the future.

So, when do you need reciepts to back up your monthly expenses, to show that they are regular expenses? For some examples:

1. a gardener that mows the lawn that you usually pay cash for, when do you broach the topic of you want reciepts, which will probly cost you more?
2. you start subscribing to the New York Times 2 months before filing
3. you make charitable contributions 6 months before filing, and it shows up on the tax return you show before filing
4. you claim a certain cost in clothing or food, and you need how many months of receipts to back that up?
5. there are medical issues you have been putting off, and then you start getting treatments that are not covered by insurance-- how soon before filing is too soon, how early before filing is too early for demonstrating your continuing need, or can you demonstrate that at all?

so these are all different but the same in that i am asking when you have to back up your sched j claims, what is the time frame that is valid, can you show just last months food bills, etc.? or what?

thanks!!!!!

MMP

[southernbelle]

I kept my receipts about 3 months before I filed and the only reason why the Trustee asked for receipts at the 341 was because I received my Federal tax refund very shortly before I filed (which helped me to pay for the atty). I think my Trustee just wanted to make sure I didn't have several thousand dollars hidden under my mattress and wanted receipts to prove where the money went, but my case is not the norm. My case was fairly complicated and I made it through okay so if I were you, I wouldn't worry too much (easier said than done I know), but you'll be fine.

[Lookadat]

Sched J is current, however, make sure you divide the items that you only pay for every 3 months by 3, etc. My schedule incorrectly showed that I paid the trash, security company every month. If you got association fees, divide them up, too. Watch out for your medical, it can help or hurt you. My care provider lets you download last 12 months so you can get a monthly average. The utilities need to be averaged, also. Do this so you can see how much money you really need. I reaffirmed my house last month and cut my expenses way back. I was still having problems with my schedule J plan, and it still keeps coming around to the house being too expensive. Now I'm being looked at by the UST and he is looking at last 2 years tax returns, and everything else for a whole year. Who saves receipts? I was trying to go green and recycle paper

[debtBgone]

I started saving all my receipts the minute I knew I'd be filing bk. Attorney said they probably won't ask for receipts but it was good to have just in case. I want my 341 to go as smooth as possible. So I'm saving everything!

[LuciluS]

I have receipts for everything from Mar - Aug as we will be filing in Sept. and hubby is an over the road truck driver and has expenses on the road. BK Attorney told me he would need at least 6 mths worth of hubby's over the road expenses. Hubby comes home on the weekend with all these little receipts. I run a calculator tape, staple the receipts to it & mark the week the receipts are for.

I have all utility, telephone, satellite, cell phone, out of pocket medical expense and prescriptions since 2000. I also have all monthly credit card statements since 2000. When the credit card statements starting going to paperless, there were several months I didn't print. So when we quit paying them late last year, I went to the websites and downloaded them. I also, have the closing statements on all the houses we bought and sold. Same thing with auto contracts.

Before I became disabled, I was an Accountant. There are certain things like the home closing statements you need to keep. I have two 5 draw filing cabinets that are crammed full. Need to go to Wal-Mart and get some cardboard boxes so I will have room in a filing cabinet for 2010. I've been through several IRS audits when I worked in the private sector and they can be gruesome. So I keep everything.

Waste Management who picks up our weekly trash and bills us quarterly is now charging $3.00 if you do not go paperless and let them ACH your checking account. I'll pay the $3.00 a quarter to pay the bill when I want to and let them print & mail me a statement. I pay all my bills online as I don't want to mess with envelopes and buying stamps. The only snail mail I do is birthday cards.

[music12]

luciluS, you are SO prepared, it's unbelievable!!!

in my case, i didn't need to show anybody any receipts. there are also many examples of people who came with a boatload of paperwork to their 341 and weren't asked about any of it. but it's best to be prepared because then you are more relaxed.

[LuciluS]

luciluS, you are SO prepared, it's unbelievable!!!

in my case, i didn't need to show anybody any receipts. there are also many examples of people who came with a boatload of paperwork to their 341 and weren't asked about any of it. but it's best to be prepared because then you are more relaxed.

I'll gladly keep the receipts and be told by Trustee he/she is not interested in them LOL! I sure wish this month would hurry up so I can get the paperwork to our Attorney and get my office cleaned up

O & the packet from Attorney requests a breakdown of all purchases over $500 and Balance Transfers from Credit Cards and date opened. That took me about 2 weeks to complete as I was doing Balance Transfers like mad to get the lower %. Some of the credit cards had been paid off and in going through the CC statements & my bank statements i was NOT easy figuring where the BT went...whether it went to another CC as a payment or directly into the bank account LOL!

[BkinTX]

I didn't keep receipts as bk kind of snuck up on us. We have bank statements and use our debit for everything.

We received our ITR the month before we filed. It was all but gone by filing day and there were no questions asked.

We are under median and have no assets, so maybe that's why not much verification was required? Dunno.

Better to have receipts and documentation and not need them than to need them and not have them, though.