Can we take a deduction for our boat payment on the mean test? 10 Answers as of September 03, 2014

We live in Florida. Can we take a deduction for our boat payment on the mean test? We've paid it for the last 6 mos. I know we're going to have to give it back. We'll probably have to file a 13 to pay for my husband's tax debts.

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D.J. Rausa, Attorney at Law | D.J. Rausa
In the Southern District of California, deducting the expense on the B-22 for a secured debt that is going to be surrendered is not permissible. I do not know what the US Trustee or Chapter 13 Trustee in Florida would say.
Answer Applies to: California
Replied: 9/3/2014
Ronald K. Nims LLC | Ronald K. Nims
Expenses outside of the IRS national standard expenses are allowed if they are necessary for the health and welfare of the family or the production of income. Boat payments would only be allowable if they meet that test. For example, if you lived on a island or isolated swampy area and could only reach work etc by taking the boat. But if the boat is used solely for recreation, the payments are an allowable expense.
Answer Applies to: Ohio
Replied: 9/3/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
You should be able to take a deduction on the means test for the interest paid on the loan for the boat.
Answer Applies to: Minnesota
Replied: 9/3/2014
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
In California, if you will be surrendering the property you cannot deduct the payment on the Means Test. This should not be a big problem for you since the boat payments while made previously will not be made in the future and the Means Test is ONE of the ways in which a potential payment plan under Chapter 13 is calculated. I highly recommend you do not attempt a chapter 13 without professional assistance, the process is too difficult to navigate without it and mistakes can be costly. Court records are full of failed pro per chapter 13s.
Answer Applies to: California
Replied: 9/3/2014
Stephens Gourley & Bywater | David A. Stephens
If you can justify keeping the boat, which is deemed a luxury item in the Code, you can take the deduction. If not, the trustee may object to it.
Answer Applies to: Nevada
Replied: 9/3/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    If the boat is used in your business, you certainly can take a deduction for it on the means test. If the boat is a luxury item used for recreation, and the amount paid on the boat during the last six months is substantial, I would doubt this expense would be allowed as a deduction, especially as you indicate you are probably going to surrender it. The Trustee will expect you to pay whatever amount your budget shows you can afford to your creditors.
    Answer Applies to: Nevada
    Replied: 9/3/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Secured debt you intend to surrender should not be a means test deduction.
    Answer Applies to: California
    Replied: 9/3/2014
    David R. Fondren, Attorney at Law
    David R. Fondren, Attorney at Law | David R. Fondren
    This is a Florida question.
    Answer Applies to: Missouri
    Replied: 9/3/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    If you do, you can expect the trustee or the U.S. Trustee to object to the deduction, especially if you plan to return the asset (and no longer have the obligation).
    Answer Applies to: California
    Replied: 9/3/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    I don't think so since it is not your primary transportation, but maybe you should ask a Florida attorney.
    Answer Applies to: New York
    Replied: 9/3/2014
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