Financial Law

In order to hide assets from the bankruptcy court, transfers to other parties are often contemplated. If you understand the legal system mindset that often catches people unfamiliar with the proceedings off-guard, you will understand and avoid pitfalls of trouble.

The United States Code has established a procedure that enables debtors to manage debt by seeking relief in the federal court system. The Federal Bankruptcy Act contemplates several different ways to manage this debt and in some cases to pay some or all of your creditors.

Generally, under the Internal Revenue Code, you will be forced to pay taxes on any transaction that involves real estate and produces a gain at the time of the sale. However, if you sell your house, the Internal Revenue Code gives taxpayers a special tax treatment.

What is Like Kind Exchange? "Like kind exchanges" are exchanges of property for the same kind of property. This is the most common kind of exchange that is nontaxable under the Internal Revenue Code. Like kind exchanges are not just for the wealthy taxpayers. Many taxpayers find themselves running into, or at least facing, the concept of like kind exchanges.

What is Rental Income? Payments received from a person or entity that is using property owned by you are typically considered rental income. You must report in your gross income all income received as rent.


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