Personal Bankruptcy Basics

Bankruptcy, Bankruptcy Procedure

For individuals (rather than businesses), there are two types of bankruptcy. Chapter 7 bankruptcy allows debtors to wipe out most existing debt, but there are strict income thresholds to qualify. Chapter 13 bankruptcy is a debt repayment agreement for higher-income people, that may or may not result in some of their debt being discharged at the end of the five year repayment plan.  This blog overviews the basics of Chapter 7 personal bankruptcy. Read more>>

Section 1031 Exchanges to Defer Capital Gains Tax

Taxes

Rising real estate prices create tax problems for owners selling property. While it’s great to sell at high prices, it’s also discouraging to pay big capital gains taxes on the proceeds. That “gain” – the difference between sales proceeds and the adjusted basis in the property (the amount paid for it originally) can be deferred with Section 1031 exchanges. But the rules are complex. Read more>>

IRS Enforcement Priorities: Pursue $900,000 or $9,000?

Tax Collection Issues, Taxes, Taxes in the News

The IRS’s enforcement priorities often appear – well – insane. Consider the cases of two current clients: one client owes the IRS $900,000, and the IRS thinks the other client owes $6,000 from a IRA distribution he took the year of the Woolsey Fire. We’re disputing the $6,000: Congress relaxed the rules for people in the disaster zone. Who’s the IRS going after? My client who had to evacuate from his house with the $9,000 tax bill. Huh? Seriously? Read more>>