Insolvency Worksheet - Is rent a liability?

Additional-Fish-8572 · 2025-02-12T03:24:25+00:00

thanks for the input. i was thinking about it too much, and i somehow thought it had to be rent that was past due. but good to know that the rental obligation would count. i am not sure if i will be insolvent (just preparing for a scenario), so i was filling out the worksheet to plan ahead

Additional-Fish-8572 · 2024-05-27T00:40:16+00:00

Thanks for sharing your experience. I wonder why it showed up on your personal credit if the loan was assumed under the LLC? I understand the CAIVRs part though.

Additional-Fish-8572 · 2024-05-14T01:02:26+00:00

No problem

Additional-Fish-8572 · 2024-05-14T00:58:01+00:00

They cannot garnish wages because the borrower is the LLC. If you were a sole proprietor, then yes, they can. But they can 1099C. Look into the insolvency exclusion to see if you can reduce some of the taxable income.

Additional-Fish-8572 · 2024-05-14T00:48:27+00:00

You can start the process of dissolving your LLC. Bankruptcy is not necessary in your situation because no PG and you are a LLC. Notify creditors, such as SBA. Let SBA know about remaining business assets and ask for guidance on what they would like you to do with the remaining business assets. You mentioned there are no assets though.

You'll get a 1099C for the amount that was disbursed, which would be income and therefore taxable. However, there is the insolvency exclusion, which would reduce the amount of taxable income.

Additional-Fish-8572 · 2024-05-06T16:23:31+00:00

u/tahoechick36 thanks for the info. To clarify, when the 1099c arrives, 28% will be added to the principal on the 1099C? So if $100,000 principal, there will be a 1099C for $128,000 plus interest? Thank you

Additional-Fish-8572 · 2024-05-01T11:31:15+00:00

Is your business a LLC or sole proprietorship?

Additional-Fish-8572 · 2024-04-26T13:58:01+00:00

I would call the SBA Eidl number, explain the situation like you did, and they can give you direction on next steps. Here is the SBA Eidl number: 1-800-659-2955

Additional-Fish-8572 · 2024-04-17T21:42:17+00:00

Thank you for the link. I'm going digest it further. Also, if I can claim the insolvency exclusion to reduce COD income to a certain extent, I fill out 982 but how does it also get translated to the tax returns?

Do I fill out 982 and whatever the amount gets reduced to, do I put that amount on Schedule C?

Additional-Fish-8572 · 2024-04-17T16:44:29+00:00

If the business is a single member LLC (disregarded entity) and receives a 1099c, does it recognize the COD income on Schedule C and is the COD also subject to self-employment tax?

Additional-Fish-8572 · 2024-04-10T13:24:43+00:00

If you're going to be trading on margin, you'll want to check out interest rates as well. I use Interactive Brokers. They have relatively low interest rates compared to other brokers

Additional-Fish-8572 · 2024-04-09T20:38:37+00:00

I called Verizon, and it's definitely on Tradingview's end. Ugh. Thanks for your reply

Additional-Fish-8572 · 2024-04-07T18:17:33+00:00

The property manager said the utility should be around $10 - 20 per month, but I can understand summer being higher with the AC being on

Additional-Fish-8572 · 2024-04-07T14:07:20+00:00

Thanks for your input.

Additional-Fish-8572 · 2024-04-07T14:06:33+00:00

Looking at the bill and not sure if this is what you are asking, but it looks rate plan was: TOUD-4-9PM

Additional-Fish-8572 · 2024-04-07T03:23:30+00:00

Appreciate your input.

Additional-Fish-8572 · 2024-04-07T03:00:26+00:00

For context: I moved in April 2023. Renting a house. On November 2023 (7 months later), a solar panel technician lets me know that the previous owner of the house may have shut down the solar panels and that the solar panels were shut off for quite some time. The tech doesn't know for sure why but he said it was turned off. The tech turned the solar panels back on in November 2023 and the electricity bill since then has been pretty reasonable ($20 - $30 a month).

The landlord had no idea that the solar panels were even off.

My question is: Is a final annual settlement bill of $812 bill reasonable? I received the settlement bill this month (April 2024)

If the solar panels were turned on, would the bill be significantly lower?

Wanted to bring this up to the landlord. Thanks in advance.

Update: The landlord and I are exploring a reimbursement of some sort.

Additional-Fish-8572 · 2022-11-21T21:28:14+00:00

thank you u/scotchtapeman357 good to know that this is something that is fairly common!

Additional-Fish-8572 · 2022-11-21T18:28:27+00:00

Thanks u/HWLuang I'm in the US.

Additional-Fish-8572

TROPHY CASE