Something new... means testiing questions!

[Cheeseater]

Budget is as follows:
2773.10 Mortgage
130.00 Water
146.00 Electric
130.00 Natural gas
62.00 HOA dues
78.00 Phone
115.00 Satellite
57.00 Internet Access
42.00 Term Life
545.00 Auto payment
470.00 Auto payment
270.00 out of pocket medical(IRS allowance)
1370.00 Food, clothing personal expense (IRS allowance)
193.00 Auto Insurance
800.00 Fuel
40.00 School Lunch
7221.10
7412.80 Gross monthly income

I've left out loads of actual expenses. What am am trying to find out is if taxes, medical insurance, social security can be included in my monthly expenses. I have receipts to back expenses 3 months back from today.

The other question is in addition to my wife's salary i have a sole proprietorship business. I use some of the above items in my business can they be included om my P&L statements as well as the means test? I know the trustee will want at least 6 months of P&L's. My business usually turns a profit of maybe $100 per month.

Thanks I know there are a lot of questions just hoping someone has had some experience with them.

[justbroke]

I've left out loads of actual expenses. What am am trying to find out is if taxes, medical insurance, social security can be included in my monthly expenses. I have receipts to back expenses 3 months back from today.

Yes. Payroll taxes (including federal, state and local taxes) can be included in your monthly expenses. Medical insurance is included, but not as a "mandatory payroll deduction". There's a place for employers/debtor provided medical insurance on both Schedule J and the Means Test.

The other question is in addition to my wife's salary i have a sole proprietorship business. I use some of the above items in my business can they be included om my P&L statements as well as the means test? I know the trustee will want at least 6 months of P&L's. My business usually turns a profit of maybe $100 per month.

Yes, your business impact on your current monthly income (CMI) calculation is your gross revenue less expenses. However, this can not be negative cash flow. Since you mention it, your CMI would include the $100/month (average over 6 months) from the operation of the business. As you eluded, the Trustee will want very good records.

Thanks I know there are a lot of questions just hoping someone has had some experience with them.

Keep them coming!

[Cheeseater]

Thanks JB, I thought you could include taxes.

The question about my business is as an example:
My P&L shows the $550 auto payment on it as an expense offset. If I list as a business expense can I still list it as a household expense for the means test? Same goes for various other expenses or would it be better to leave the car out of my P&L. Thanks

[justbroke]

My P&L shows the $550 auto payment on it as an expense offset. If I list as a business expense can I still list it as a household expense for the means test? Same goes for various other expenses or would it be better to leave the car out of my P&L. Thanks

No, as that would be double dipping/counting. It is either a business expense, or it's a household expense. It can't be both for either the purposes of Federal tax law (IRC/IRM) or the Bankruptcy code.

Just a general note... you should list your expenses where they belong and where you can defend them. That means, don't try to claim something as a business expense when you clearly have no documentation supporting such. The Trustee can easily check your Schedule C to see if you have consistently claimed the expense in prior tax years/periods. A single accounting misuse, could end up getting your case dismissed for "bad faith".

[Cheeseater]

Thanks, that makes sense. My expenses are legitimate and are easily substantiated from past schedule C's. I guess I'll post a new budget in a day or 2.
Thanks

[ready2puke]

Is 50% of your debt business related? If so I think you wont have to take the means test...

[justbroke]

Is 50% of your debt business related? If so I think you wont have to take the means test...

One may not need to take the Means Test, but you still need to fill out Schedule J. I don't believe this is a Means Test issue for the poster (Cheeseater).

This is an expense allocation issue.