Tax deductions in Chapter 13 disbursements
By Cathy Moran, California Bankruptcy Lawyer on Mar 5, 2007 in Chapter 13 Bankruptcy, Tax Issues In Bankruptcy
Chapter 13 debtors might benefit by scouring the Chapter 13 trustee’s list of disbursements in 2006 for payments that may be deductible to the debtor. It is my contention that if the payment would have been deductible if the debtor had cut the check, it is no less deductible because the trustee cut the check with the debtor’s money.
Most mortgage arrears paid through a Chapter 13 plan are comprised of (deductible) interest. Consider property taxes, business taxes, or other business debts when looking for deductions.
Happy hunting.
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