Pre vs Post Bankruptcy Tax Filing
I hope you can clarify something. Let`s say that I have filed for bankruptcy on May 12, 2008. I am assuming my pre-bankruptcy tax filing should be automatically done by my trustee for the period Jan 1/08 to May 12/08. If the trustee does not file my post bankruptcy tax return, that means I will be required to file it, Is that correct ? If so, then my post bankruptcy period wil be : May 12/08 to Dec 31/08. Is this correct ? Finally, will CRA get confused because 2 tax filings were submitted for the year 2008? Is there going to be a problem ? Thank-you
Posted from: Ontario
You are correct. The two returns must be filed just as you have outlined. As for CRA getting confused, they may, but typically if you clearly mark either pre or post bankruptcy on the returns they will be able to keep things straight.