Listing "Other Income Last Two Years"

[Memphisbelle]

Hey All,

So, from my other posts you can see this is the only portion of the petition I am stressing about before I meet with lawyers next week.

Bottom line is my mom gave me two large checks that I deposited in my account this summer and I believe I need to put them in the "other income" section.

So, I am just wondering if and how they will ask to verify it came from her. I can do it but just don't want her to find out I am bankrupt. The deposits will have been made more than six months before I file.


Soooo, just curious for those who filed and got a large amount of cash/checks in the last 2 years from someone/family, how did you claim it and did you have to do anything to prove where you got it? Cancelled checks, affidavit..... And if affidavit who do I bring my mom to swear is a true statement.

Thanks for anything you can share on this topic.

[tobee43]

were these checks "gifts".....a loan payback...for the kids???

you aren't saying how large they are...it they were maybe 50k i might worry...however, usually when filing chapter 7 one is only asked to provide 6 months of bank statements....if they are within that 6 month period the trustee may ask...we didn't file until we had 6 months consistent....with withdrawals and deposits just so there would be no question..

i know the 2 year question you were asked, but the only one we had was if any monies were transferred or withdrawn within the past 2 years and if so where did it go...basically...however, it seems as though your question is a bit different that our "2" year question was.

we did, however, have a deed transfer to explain...but had all the documents to back it up, so once again it was no problem.

if you have the documents to back everything up you should be fine...really it wasn't that you inherited a large sum that your attempting to hide??

[Memphisbelle]

It is at worst, a legit gift from my mom but in actuality we used a lot of the money to get ready to build her a house on my property. I just think it may be easier if I call it a straight gift so I don't have to gather all the documentation to show where we spent. Do they really care how $20,000 was spent if it was more than 6 months ago. I was current on paying all my debts when we spent that money. My CC's have been closed for a year.

I know they are not going to see the deposits it unless they ask for more than six months of statements but I have to answer this question and give details. Are they just gonna take my word she gave to me or am I going to have to prove it? That is my question. It is legit, I just don't want to have to get my mom involved with some kind of sworn statement or something.

This question on the US Bankruptcy Court Statement of Financial affairs.

2. Income other than from employment or operation of business State the amount of income received by the debtor other than from employment, trade, profession, operation of the
debtor's business during the two years immediately preceding the commencement of this case. Give particulars. If a
joint petition is filed, state income for each spouse separately. (Married debtors filing under chapter 12 or chapter 13
must state income for each spouse whether or not a joint petition is filed, unless the spouses are separated and a joint
petition is not filed.)
AMOUNT SOURCE

[tobee43]

you list "income"....i would ask your atty if this money from your mom is considered "income"...as such...did you claim the money on your tax return.

the best way usually gifts are tax free up to 10k for each family member...whereas either has to list it as "income"....however, i would run it by your atty.

i personally can't see it as "income"....anyone else out there???

[Memphisbelle]

Just my mom has to pay taxes on anything over $ 10,000 and she knew that. She took it out of a retirement fund, as we are building her retirement home. I don't have to claim it or pay taxes on it when I file next year. We checked that out before we made the transaction. I am just going to ask an attorney because I've read that I do have to call it "other income" on the bankruptcy form and that I don't. So, I am confused and wonder if others had this issue come up.

Thanks for trying to help me and friending me. I am new to this site so not sure how that works or the bars to the left. Looks like I am building up a lot of orange. What do they represent?

This is from the IRS:

No tax payable by the person receiving your gift or
bequest. Generally, the person who receives your gift
or your bequest will not have to pay any federal gift tax or
estate tax because of it. Also, that person will not have to
pay income tax on the value of the gift or inheritance
received. However, covered gifts or bequests received
from expatriates after June 16, 2008, may be subject to
tax. Consult your tax adviser for more information.

[tobee43]

Just my mom has to pay taxes on anything over $ 10,000 and she knew that. She took it out of a retirement fund, as we are building her retirement home. I don't have to claim it or pay taxes on it when I file next year. We checked that out before we made the transaction. I am just going to ask an attorney because I've read that I do have to call it "other income" on the bankruptcy form and that I don't. So, I am confused and wonder if others had this issue come up.

Thanks for trying to help me and friending me. I am new to this site so not sure how that works or the bars to the left. Looks like I am building up a lot of orange. What do they represent?

This is from the IRS:

No tax payable by the person receiving your gift or
bequest. Generally, the person who receives your gift
or your bequest will not have to pay any federal gift tax or
estate tax because of it. Also, that person will not have to
pay income tax on the value of the gift or inheritance
received. However, covered gifts or bequests received
from expatriates after June 16, 2008, may be subject to
tax. Consult your tax adviser for more information.

welcome to the bkforum! it's a great place to find info and get support during this hard time...i'm certain you'll get more input for others about your situation...and hopefully it will provide you with more information.

the bars have to do with experience...and activity...and i'm not sure...there is a place at the top if you click "experience" i think it explains it all.

best of luck with this situation and make sure you post and let us know what happens!!

[tcreegan]

Hi all, Hi MemphisBelle,

Just to clarify for folks, from your other posts: Mom gave you $$, you deposited it and paid people doing work for Mom (Mom lives long way away)

The $ was from Mom for Mom but it went through her acct. How does she handle this?

Any gurus out there?

Tom in Colo