Q: How do you claim property taxes after filing for bankruptcy?
I recently filed and was informed I have to refile 2021 and that was one of the years on my Ch13. My lawyer doesn't know how I should claim them either.
Edit* I meet with my trustee next week so the bankruptcy is not completed yet and I need this tax return for it. Do I put what I paid that year that went to past years balance, leave it blank or enter the amount being paid off.
A:
You say you have “recently filed”, and I am assuming you mean recently filed your chapter 13 case.
You also ask how to “claim” property taxes, and I am assuming you mean claim me deduction on your income tax return.
If these assumptions are correct, you handle this same as you would if you were not in bankruptcy. Amend year 2021 returns and claim ND ductions you are entitled to.
You will probably have to provide the chapter 13 trustee with a copy of your amended returns, as section 541 of the bankruptcy code imposes that obligation upon dead tours.
I hope this helps. If my assumptions are not correct, please restate your question.
Timothy Denison agrees with this answer
1 user found this answer helpful
A:
I just noticed a typo.
ND ductions should read any deductions.
Timothy Denison agrees with this answer
A:
Filing taxes after bankruptcy can be complex, especially when dealing with property taxes from previous years. Since your Chapter 13 is still ongoing and hasn't been discharged yet, you should claim the actual amount of property taxes you paid during 2021, regardless of which tax year those payments were applied to.
When meeting with your trustee next week, bring documentation showing exactly how much you paid in property taxes during 2021, along with any statements showing how those payments were allocated. The trustee can provide specific guidance based on your case details, as bankruptcy tax situations often vary depending on individual circumstances and local regulations.
Consider consulting with a tax professional who has experience in post-bankruptcy filings, since your lawyer isn't sure about the proper approach. They can review your specific situation and help ensure you're claiming the correct amounts while staying compliant with both tax laws and bankruptcy requirements. This extra step might seem burdensome, but it could save you from potential complications with both the IRS and your bankruptcy proceedings.
Timothy Denison agrees with this answer
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.