QUESTION
Am I allowed to take credit or deductions for these yearly fees paid to the attorney and trustee?
Asked on Mar 26th, 2014 on Bankruptcy - Idaho
More details to this question:
I am currently in Chapter 13 bankruptcy. I pay $1400.00 per month to the attorney fee and trustee. I'm currently in the process of doing my estate and federal taxes.
4 ANSWERS
The IRS only allows a tax deduction for legal fees connected with providing representation concerning tax matters. I am afraid that this bankruptcy will not qualify as a deduction for this type of service.
Answered on Mar 31st, 2014 at 6:55 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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No. You don't get any more credit for paying Chapter 13 payments than you do for paying a credit card debt. There could potentially be some 1098 deductions available for amounts paid on student loans or other types of debts, but you should receive documentation for those options.
Answered on Mar 31st, 2014 at 6:54 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, the trustee and attorney fees aren't deductible items. Sounds like you got an expensive attorney, trustee fees are a fixed percentage of the plan payment (usually under 5%).
Answered on Mar 31st, 2014 at 6:54 PM
Deborah F. Bowinski
I don't think so, but you should check with a professional tax preparer to be certain.
Answered on Mar 31st, 2014 at 6:54 PM