car question

[monkatom]

Quick question. I have researched and been unable to find the answer. If we sell a car that will not be exempt when we file and use the procedes for income taxes, lawyer fees, and insurance. Will the 20K or so we receive for the car be included in our 6 months of income? Also I belive I read that it will be included for tax purposes? Is this correct.

[woeisme]

I think you can sell an asset, but you have to be able to document where the proceeds went, so you want to save all reciepts and invoices for service, etc. You need to prove that you did not use it to make preferential payments to an unsecured creditor, etc. But if you are using it for priority debts, like lawyers fees and income tax, I don't think you should get in any trouble as long as you document, document, document!

I've never heard of having to pay anything other than sales tax on the sale of a car, and in that case, the buyer pays, not the seller. And I don't see how it could be used to compute your 6 month income, someone please correct me if I'm wrong.

[monkatom]

Just spoke to a lawyer and he said yes we could pay these itesm off plus he suggested we make another month or two of minumum payments with the money as we have put charges on our card in October then if we stop paying it may cause a problem since one of the charges was a cash advance. also he did say this will not come into play regarding our 6 month income and we could use it for as much cloths as we like and furniture since as soon as the furniture is delivered it depreciates below the 500 threshold???