Quote:
Originally Posted by
Alan Mendelson
The #1 reason people file for bankruptcy is illness usually cancer without sufficient insurance. For them a second job is out of the question and they probably can't work even one job.
https://m.huffpost.com/us/entry/6887642
It was 1996. Illness wasn't my issue and I've explained it here before when arci blew his stack over me. But I'll be happy to go over it once again because it was a stepping stone to our financial security.
First off I lost about $45k/year on apvp for 6-1/2 yrs., and while that may seem a lot back then to the scrapers-by here, I didn't even feel it. The bigger issue was buying a piece of land in Calif. for six figures that turned out to be a scam and I lost it all. I was out of the country 75% of the time and didn't do my homework like I should have. So we filed to eliminate that debt, and before the BK laws were changed they couldn't touch our significant 401k's, so I took complete advantage of that and a few other loopholes. In short, it was a very positive experience, but as regnis could probably tell you, the law changed since then and it would be a VERY different outcome today.
Now I've also talked about how I took huge advantage of IRS law for the 10 years I filed as a professional gambler. Few people do that--even Jean Scott and her infamous Chinese tax atty. don't even have access to the kind of legal tricks I did with my son-in-law at the time.
Yes, every time I took my wife out to dinner, that was a business expense, which for those of you on the sidelines who don't know, is a direct deduction from income. Why? Because I was a pro gambler, a writer, and a consultant to other VP players as I called it. And my wife was my volunteer assistant whom I discussed business matters with at every meal out.
As for the partial grocery deductions--I had many BBQ parties in my backyard, and there were always times I had one or more of my "clients" over. Thus the groceries deductions. And why would the IRS allow this? Because I pro-actively showed them their own guidelines on saving the Govt. money by choosing the cheaper of the two: an expensive meal out...or a far cheaper meal in the back yard.
These were just some of the things that not only professional gamblers should be checking on in any way possible, but ALL schedule C filers should be trying to find out about. Think GE, who used to pay lots of taxes until they smartened up and hired roomfulls of ex-IRS employees to do their taxes. They went from paying hundreds of millions to paying none.
It's all there folks, and you don't have to be a super special phantom bucks expert to be able to utilize these bankruptcy and tax tools.