Different answers!!!??

[okiemom2008]

I am selling my home since I cannot use it as my homestead(it is in another state).

While browsing the forum tonight I came across this thread http://www.bkforum.com/showthread.ph...xas+exemptions

that states I would have to include the profit of the home as my income for the last 6 months..I have asked my lawyer and he has told me that it is not seen as income and I do not have to have it included so just wanted to make sure.

I know the other post is about selling a car but a mobile home seems to be somewhat of the same thing when it comes to the law.

Thanks

[okiemom2008]

Just incase anyone is wondering, I talked to my lawyer today and he said that it is not considered income unless you make a profit off it...so say you buy something for 20k and resale it for 30k. You would have 10k income.

[Phillymanhere]

As I understand it, any profit you make off sale of the house is income, just like investment income of any type is income. Not, it so happens at at the federal level, you can sell a house for up to $500K, I think it is, before you are subject to tax on sale of a house.

But for bk purposes, any profit from the sale of the house is income apparently. But double-check your lawyer. How much income are you talking about? ...

[Help!]

It *can* be counted as income. Your attorney is probably advising you based on the case law in your district. Regardless, unless you can cover the proceeds with exemptions the proceeds will be an asset the trustee can take.

[okiemom2008]

It *can* be counted as income. Your attorney is probably advising you based on the case law in your district. Regardless, unless you can cover the proceeds with exemptions the proceeds will be an asset the trustee can take.

We are putting it in exempt IRA'S and buying a used vehicle with the rest. I am hoping that it all works out correctly. We will not be selling the house until right before we file because we do not have to count any of it as long as it is not in the 6 months preceding filing date.

[Help!]

I would be careful about the IRAs since a trustee could look upon this as shielding an asset. Unless you are able to fully exempt the vehicles the trustee can pursue those.

[okiemom2008]

I would be careful about the IRAs since a trustee could look upon this as shielding an asset. Unless you are able to fully exempt the vehicles the trustee can pursue those.

The vehicle will be exempt since it will be the ony vehicle we have. We have one now but are giving it up in the bk. Lawyer acted like there is no way the trustee would try to take IRA money-especially since it is money we initially took out of retirement account to put down on the house and now we are just getting it back..I hope he is right!!!!

Thanks

[Help!]

IRAs are not a slam dunk - here's one example:

http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=3rd&navby=case&no=971514p

but your lawyer should be knowledgeable about the case law in your district. Obviously it's more likely that the exemption would be challenged if it's a huge amount of money, and it probably also depends on the characteristics of the case as a whole. I wish attorneys would give their advice followed by "but there are no guarantees" instead of making everything sound so black and white.

[okiemom2008]

IRAs are not a slam dunk - here's one example:

http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=3rd&navby=case&no=971514p

but your lawyer should be knowledgeable about the case law in your district. Obviously it's more likely that the exemption would be challenged if it's a huge amount of money, and it probably also depends on the characteristics of the case as a whole. I wish attorneys would give their advice followed by "but there are no guarantees" instead of making everything sound so black and white.

Ok, thanks! What would be considered a huge amount? I guess it depends on the state and district