Question on means test

[Lajazz947]

I have good income but heavy business expenses.

It brings ny income down quite a bit. is there a provision somewhere for these expenses?

Do trustees make adjustments?

[fltoo]

Laj, I have no experience with the Bk paperwork yet, but does it ask for gross or net income from a business?

I would think that your net income statement would suffice for real income.

[Lajazz947]

It asks for gross before taxes so that what has me worried.

[fltoo]

No worry Laj, your income on the income statement is your income before taxes.

That is your income after all your business expenses.

I used to only do year end income statements but for the past year, I did quarterlies to better track the business in prep for BK.

[Lajazz947]

Thanks but am i missing something here?

the means test asks for gross income with nothing other than taxes taken out.

Is the income statement the I and J?

I fail the means test miserably in the past 6 months but if I look at my last years tax return and the projected 2008 income along with all my adjustments I am OK.

Does the trustee look at a means test merely as an initial test and then look at the income statement for a determination? Maybe that's where I am missing it.

I am under the impression that the means test is it for qualifications to a 7 or a 13 although I know that there is allot more to it.

Help!!!!!

[fltoo]

Sorry for the confusion. Again, I am not familiar with the BK paperwork so manybe someone else can respond.

I was talking about your Income Statement from the business where it shows your income after all write offs and expenses for the course of doing business.

Does anyone know if you use the income on the Income Statement as income or is there a place on the BK paperwork to identify expenses against gross income from a business?