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Listing business expenses in Ch. 13 after Wiegand

Posted: Thu Jan 28, 2010 9:47 am
by Yahoo Bot

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We have put the business expenses under "special circumstances" in the
means test and haven't had an issue.
Shannon A. Doyle, Esq.
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791-1600
(626) 332-8600 Phone
(626) 332-8644 Facsimile
www.blclaw.com
________________________________

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Listing business expenses in Ch. 13 after Wiegand

Posted: Thu Jan 28, 2010 12:57 am
by Yahoo Bot

I agree with Lou's analysis that incorporating is usually the best
solution, if the client is above median income under Wiegand but would
be below median if paid salary via a new corporation, has the money to
incorporate and can wait six months to file (or less if the whole six
months is not required to bring the average income below medium.)
However I am not certain a C corpation is always the best option. I
think we need to thoroughly review and evaluate the possibilities with
any prospective client so the client can make a fully informed
decision. It is probably smart to consult with the prospective
client's tax accountant in this analysis. Remember using a C
corporation results in double taxation on net profits. S corps of
course have all profits flow through to the shareholder and are thus
taxed only once. For C corps whatever the debtor does not take out in
salary (assuming there are remaining earnings) is profit taxed to the
corporation. Then whenever profit is ultimately distributed to the
debtor as a dividend it is taxed again to the debtor. My recollection
is that corporations cannot stockpile money without a valid business
purpose so dividends may be required to be disbursed at some point
during the plan. Depending on the dollar figures involved I think we
want to be careful of placing the client in the position of biting off
his/her nose to spite his/her face, ie paying it out in additional
taxes, accountants fees for the tax return, and other administrative
costs to avoid paying less money into the Chapter 13 plan. The
prospective client could also convert from the C corp to an S corp
after the case is filed if that is more beneficial to the client under
the circumstances as determined in consulation with the debtor's
accountant.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Wed 27/01/10 11:08 PM , "californiadebtreliefagency"
Esbinlaw@sbcglobal.net sent:
Form a new corporation (a C-Corp), contributing business assets as
capital contribution, list stock as an asset of estate, and list
income from corp in B22. Less complicated and you have a malevolent
corporation paying wage to debtor only as much as is necessary to fund
chapter 13.
Lou Esbin
--- In cdcbaa@yahoogroups.com [1], "Mark J. Markus" wrote:
>
> In light of the Wiegand case in a Ch. 13:
>
> Where are you all entering the business expenses of a debtor on
Form 22C?
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> web: http://www.bklaw.com/ [2]
> This Firm is a Qualified Federal Debt Relief Agency (see what this
means at

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Listing business expenses in Ch. 13 after Wiegand

Posted: Wed Jan 27, 2010 11:08 pm
by Yahoo Bot

Form a new corporation (a C-Corp), contributing business assets as capital contribution, list stock as an asset of estate, and list income from corp in B22. Less complicated and you have a malevolent corporation paying wage to debtor only as much as is necessary to fund chapter 13.
Lou Esbin
>
> In light of the Wiegand case in a Ch. 13:
>
> Where are you all entering the business expenses of a debtor on Form 22C?
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> web: http://www.bklaw.com/
> This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>

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Listing business expenses in Ch. 13 after Wiegand

Posted: Wed Jan 27, 2010 10:13 pm
by Yahoo Bot

Right except in the circumstance where the net result is a negative
mdi in which case it does not need to be a five year plan.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Wed 27/01/10 10:02 PM , "Mark J. Markus" bklawr@yahoo.com sent:
That makes sense to me. I mean, the only impact of Wiegand is how
the expenses affect the time period for the plan (3 vs. 5 years),
right? So if we stipulate to a 5 year plan, it shouldn't make any
difference where we stick the expenses, to my understanding.
************************* Mark J. Markus Law Office of Mark J.
Markus 11684 Ventura Blvd. PMB #403 Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax) web: http://www.bklaw.com/ This
Firm is a Qualified Federal Debt Relief Agency (see what this means at

The post was migrated from Yahoo.

Listing business expenses in Ch. 13 after Wiegand

Posted: Wed Jan 27, 2010 10:02 pm
by Yahoo Bot

That makes sense to me. I mean, the only impact of Wiegand is how the
expenses affect the time period for the plan (3 vs. 5 years), right? So
if we stipulate to a 5 year plan, it shouldn't make any difference where
we stick the expenses, to my understanding.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
________________________________________________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
On 1/27/2010 9:32 PM, Mark T.Jessee wrote:
>
>
> Personally I still list them in 3B, but then complete the expense
> portion of the means test if it makes a difference in the debtor being
> above or bellow median income. I suppose you could list them in line
> 57 but that just seemed an odd fit. As long as the expense portion of
> the means test is completed and it is clear that the expense is listed
> somewhere on the form for the above median debtor, I don't think it
> matters much which line it is on.
>
> Mark T. Jessee
> Law Offices of Mark T. Jessee
> "A Debt Relief Agency"
> 50 W. Hillcrest Drive, Suite 200
> Thousand Oaks, CA 91360
> (805) 497-5868
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED
> RECIPIENT OF
> THE TRANSMISSION, AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
> LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
> DISSEMINATION,
> DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE
> NOTIFY
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> MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>
> *On Wed 27/01/10 8:47 PM , "Mark J. Markus" bklawr@yahoo.com sent:
> *
>
> In light of the Wiegand case in a Ch. 13:
>
> Where are you all entering the business expenses of a debtor on
> Form 22C?
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> web: http://www.bklaw.com/
> This Firm is a Qualified Federal Debt Relief Agency (see what this
> means at
> http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/
> )
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law
> office of Mark J. Markus that may be privileged. The information
> is intended for the use of the addressee only. If you are not the
> addressee, note that any disclosure, copy, distribution or use of
> the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
> imposed by the IRS, we inform you that any U.S. tax advice
> contained in this communication (or in any attachment) is not
> intended or written to be used, and cannot be used, for the
> purpose of (i) avoiding penalties under the Internal Revenue Code
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed in this communication.
>
>
>
>

The post was migrated from Yahoo.

Listing business expenses in Ch. 13 after Wiegand

Posted: Wed Jan 27, 2010 9:32 pm
by Yahoo Bot

Personally I still list them in 3B, but then complete the expense
portion of the means test if it makes a difference in the debtor being
above or bellow median income. I suppose you could list them in line
57 but that just seemed an odd fit. As long as the expense portion of
the means test is completed and it is clear that the expense is listed
somewhere on the form for the above median debtor, I don't think it
matters much which line it is on.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED
RECIPIENT OF
THE TRANSMISSION, AND THIS COMMUNICATION IS INTENDED TO BE
PRIVILEGED BY
LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
DISSEMINATION,
DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED.
PLEASE NOTIFY
US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE THIS
MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
On Wed 27/01/10 8:47 PM , "Mark J. Markus" bklawr@yahoo.com sent:
In light of the Wiegand case in a Ch. 13:
Where are you all entering the business expenses of a debtor on Form
22C?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/ [1]
This Firm is a Qualified Federal Debt Relief Agency (see what this
means at

The post was migrated from Yahoo.

Listing business expenses in Ch. 13 after Wiegand

Posted: Wed Jan 27, 2010 8:47 pm
by Yahoo Bot

In light of the Wiegand case in a Ch. 13:
Where are you all entering the business expenses of a debtor on Form 22C?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
________________________________________________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.

The post was migrated from Yahoo.