Chapter 7 and Chapter 11 Tax Tips

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”

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”

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?”