Income Tax (Credits) Question

February 10th, 2009 by Questions

Hello, I have searched for an answer to the following question and have not been able to find one, could you advise me?

My bankruptcy was finalized on Nov. 18, 2008 and I am in the process of gathering income tax info for the trustee to prepare my two returns for the calender year as required. I had a significant amount of post-bankruptcy medical expenses reciepts (approx. $1,350- in qualified expenses). I would prefer not to use them on my post backruptcy return from Nov 19 to Dec 31 /08, but instead keep them and add to my expected total medical claims for Jan to Oct 2009 (total of 12 months). As CRA allows any 12 months to be used, so long as it ends in the correct taxation year, is this something I would be allowed to do for my 2009 tax year return. It is to my tax advantage to pull all available tax deductions/credits into the 2009 tax yr due to a lower income expected this year due to less hrs at work.
to be used, so long as it ends in the correct taxation year, is this something I would be allowed to do for my 2009 tax year return. It is to my tax advantage to pull all available tax deductions/credits into the 2009 tax yr due to a lower income expected this year due to less hrs at work.

Certainly I do not want to do anything to jepordize the discharge of my bankrupcty, however, I am attempting to do tax planning for the 2008 & 2009 tax years to improve my situation financially after the bankruptcy concludes.

Thank you for your expert opinion.

Posted from: Ontario

Questions

One Response to “Income Tax (Credits) Question”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If the tax credits are available they must be used in the post bankruptcy period. The bankruptcy is not about tax planning, but providing the maximum benefit to the creditors from those tax returns.

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