Chattahoochee County Georgia Bankruptcy costs law firm

Chattahoochee County Georgia Bankruptcy costs law firm

expenses in a Chapter 13 Bankruptcy in Harris County Georgia

The bankruptcy estate can take a deduction for administrative expenses and any fees assessed. These fee are normally deductible as itemized deductions subject to the 2% floor on miscellaneous itemized deductions. However, administrative expenses attributable to the operation of a trade or business by the bankruptcy estate or the production of the estates rents or royalties are deductible while determining the adjusted gross income.

The expenses can be disallowed under other rules of the Internal Revenue Code, such as disallowing certain capital expenditures, taxes, or expenses concerning tax-exempt interest. Such expenses may only be deducted by the estate, and never by the debtor.

When the administrative expenses of the bankruptcy estate are higher than its gross income for the tax year, the excess amount may be carried back 3 years and forward 7 years. The amounts may only be carried back or forward to a tax year of the estate and never to the debtors tax year. The excess amount to be carried back or forward is considered a net operating loss and should initially be carried back to the first year possible.

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