A chapter 7 or Chapter 11 bankruptcy filing does not absolve the filer from filing a personal income tax return. At the date of the bankruptcy filing a bankruptcy estate is created. At this point, the individual must file a personal tax return for his personal income before and after the bankruptcy estate is createdContinue reading “Chapter 7 and Chapter 11 Tax Tips”
Category Archives: Uncategorized
Don’t Sleep on Blockchain Possibilities
When we hear “Blockchain” most of us think bitcoin and other cryptocurrencies. It has much greater potential applications than that. A good definition is “an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually anything of value”. The software technology has not caught up with theContinue reading “Don’t Sleep on Blockchain Possibilities”
Interesting Chapter 12 Tax Break
If you or your client meets the qualifications to file a Chapter 12 bankruptcy you will be able to take advantage of a very nice tax break not available in other bankruptcies. That is that capital gains tax liabilities incurred both before and after the Chapter 12 filing will be treated as non priority debtContinue reading “Interesting Chapter 12 Tax Break”
Using a Stalking Horse
Whenever you are involved in a receivership or a bankruptcy liquidation don’t forget about the stalking horse when it is appropriate. The stalking horse is someone who agrees to make a minimum bid for a business or property prior to an auction. In return for this minimum bid they will receive a payment called aContinue reading “Using a Stalking Horse”
Hey Bankers Do Your Job!
I just read an article about a 44 year old farmer who got three years in prison for defrauding a bank out of $2.9 million. I didn’t mind the farmer getting the prison term, but a couple of the things the bank did really bothered me. When the bank asked for additional collateral the farmerContinue reading “Hey Bankers Do Your Job!”
Testifying as an Expert Witness
Just recently I testified as an expert witness in a divorce case in a rural county courthouse. The purpose was to establish the value of the assets and a base level of income in order for my client to receive maintenance and her share of the marital assets. This was not a long time onContinue reading “Testifying as an Expert Witness”
In bankruptcy k-1 income is not allocated
If a bankruptcy estate has ownership interest in a partnership, estate or subchapter S corporation the k-1 it receives will be for the entire year no matter when the estate was established. In other words the k-1 income for the year is not allocated to time periods before and after the creation of the estate.Continue reading “In bankruptcy k-1 income is not allocated”
Establish Insolvency Date to Prevent Preference Payments in Bankruptcy
An unscrupulous debtor will often delay his bankruptcy filing until after he pays friends, relatives and close associates what he owes them while leaving other creditors unpaid. Normally, the bankruptcy filing presumes the date of insolvency as the date of the bankruptcy filing and any payments made up to 90 days prior to the bankruptcyContinue reading “Establish Insolvency Date to Prevent Preference Payments in Bankruptcy”
Underserved Forensic Accounting Market
How big is the market for high quality forensic accounting or fraud examination for modest size cases? This seems to be an underserved area. In many cases if an experienced forensic accountant is not readily available the businessperson, attorney or executor will make do without. This is an area that I am reaching out to.Continue reading “Underserved Forensic Accounting Market”
When do you need a forensic accountant?
If you are concerned that someone may have stolen money or misappropriated other assets from your business or an estate then you should talk to a forensic accountant. The forensic accountant can perform a fraud examination and determine if anything was stolen. If there was anything stolen the fraud examiner can prepare a report quantifyingContinue reading “When do you need a forensic accountant?”