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.

Payments received from a corporation are typically considered dividends. These are taxed at ordinary income rates. The Internal Revenue Service reasons that since they are paid from the earnings and profits of a corporation, they are ordinary income to you, the recipient.

Each year, the Internal Revenue Service faces pressures from those taxpayers who legitimately utilize a portion of their home as an office. In the past, claiming a "home office" deduction, or the deductions for some of the expenses related to otherwise normal home ownership, triggered a "red flag" that would inevitably increase one's chances of audit.

"An IRS Audit." Those words can often strike fear into the minds of normal law-abiding citizens. Knowing some of the basic IRS principles can help to take the fear out of an audit and even make you feel as if you are comfortably ready to go through with the process.

Because this area has exploded in the past decade, telephone orders and mail order solicitations have their own set of rules which often vary by state. If you do have any particular questions about your state, contact an attorney through member services. We’re here to help.

Collection agencies are in business solely to collect money. While many of these agencies have not studied politeness or manners, these agencies are legally able to harass and pressure you for amounts owed.

You do have certain rights as a debtor:


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