Tax Deductions Hidden in Chapter 13

True. Most people no longer itemize under the current Tax Code. However, the amount of money involved varies and should be considered.

The same very important debts that a Chapter 13 plan pays are often tax deductible.

And your client is still the person who’s paying, even if the trustee writes the check. Don’t allow them to miss out on these deductions.

Tax deductions in bankruptcy

Let’s look at some common deductions lurking in the Chapter 13 disbursements.

Mortgage interest

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moran_cathy
Head of Moran Law Group

Cathy Moran has headed her own small firm Moran Law Group in Redwood City, California, for nearly 30 years. Family law and tax issues as they play out in bankruptcy are areas of particular interest to Cathy.

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