Athens-Clarke County GA Bankruptcy attorneys

Athens-Clarke County GA Bankruptcy attorneys

Bankruptcy expenses in Oconee County GA

The bankruptcy estate is permitted a deduction for administrative expenses and any fees assessed. These fee are usually deductible as itemized deductions subject to the 2% floor on miscellaneous itemized deductions. But, administrative expenses attributable to the conduct of a trade or business by the bankruptcy estate or the production of the estates rents or royalties are deductible in determining the adjusted gross income.

The expenses can be disallowed under other provisions of the Internal Revenue Code, such as disallowing certain capital expenditures, taxes, or expenses relating to 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 not to the debtors tax year. The excess amount to be carried back or forward is considered a net operating loss and must first be carried back to the earliest year possible.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy