I'm a buisness owner filing for chapter 7 in 3-4 months. My question is, I have taken 99% of my income from draws. Meaning no tax taken out. I'm wondering if the means test is taken off of my deposits or if they factor in the tax that should have been added to the gross of that draw?? Any answers would be great. Plus I have sold a few assets for a total of $3500 and put my car in my wifes name, adding $3250 to the loan now I see that my not have been a good idea.. What should I do with the money? I do need some repairs, tires and food storage. What is best and safest to do?
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Hi Jazzfan,
Just to clarify, are you filing consumer or non-consumer? Joint w/ wife or by yourself?
Welcome aboard, lots of good folks around here to help, I'm not the best person to answer business-related issue but I am sure someone else can chime in.....
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010 -
I'm filing single, but married. I will be closing down the business. Plan on starting a new one sometime after.Comment
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One of my biggest question is if the court looks and your draws as total income or they rate it differently because no tax has been taken out.Comment
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It is total income. There is also a spot for expenses in which you would list the amount of taxes you paid. In the end the taxes come out.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.Comment
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Whenever an S-Corp is involved it gets a little more complicated. My suggestion is to make sure you use a good attorney and have your taxes done prior to filing.Comment
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I didn't pay taxes on the draws. I will get a K1 and my W2's when I file. But thats it.Comment
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Hi again Jazzfan,
...just thought I would throw in this nugget; BK is 'income from all sources' taxable or not.
Good luck w. your filing!
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010Comment
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Do you mean a 1099? If your using a W2 than taxes should be withheld. You really want to use a good lawyer, if you try to file pro-se it could end up costing you a lot more money in the long run.Originally posted by Jazzfan View PostComment
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Was it income, or was it a "loan" from your business?
All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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