First Time Bankrupt, Discharged, they did my taxes wrong

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First Time Bankrupt, Discharged, they did my taxes wrong
« on: September 18, 2009, 05:19:12 PM »
I was discharged one month ago for bankruptcy and it ws my first time.  I have been reviewing my papers and I noticed they did my taxes wron. They didn't account for a disability amount and another minor thing. When I contact RC to have my file reassessed,if there is a further return, will this money be sent to the trustee, or if to me do i have to forward it to them.  I also just recieved a check yesterday from a bequest . Am I obliged to give that to the trustee or am I finished now that my dischage has beeen granted.  I'm not sure what im supposed to do



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Re: First Time Bankrupt, Discharged, they did my taxes wrong
« Reply #1 on: November 04, 2009, 04:30:29 PM »
There are two personal tax returns due in the year of bankruptcy.  The trustee normally prepares the pre-bankruptcy return (pro-rated from Jan 01 to date of bankruptcy) and you can have the post-bankruptcy return (pro-rated from date of bankruptcy to Dec 31st) completed by the trustee for a fee if you so desire, or by yourself or by any other legitimate accountant or professional tax preparer.  If you are eligible for personal credits (e.g., disability amount), they are pro-rated between the two returns.  If the trustee failed to claim the credit, you can file a T1-Adjustment request to fix it.  You should obtain the trustee’s consent if you plan on filing an adjustment request to the pre-bankruptcy return.
Without knowing the specifics about your tax situation, I cannot advise you on what the implications are for your adjusted return(s).
With respect to the bequest (inheritance) if it was money due to you prior to your discharge (e.g. date of death of your relative is before your discharge), then it vests in the Trustee, if not, it is yours.  As for tax consequences, inheritances are non-reportable and non-taxable by the beneficiary.
I hope that clears things up a bit.  If you would like more specific help, feel free to contact me.
K. Bruce Donnelly
Dion Vallée Income Tax & Bookkeeping Mgt.


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