Sample Insolvency Worksheet INSOLVENCY WORKSHEET

Document Sample
Sample Insolvency Worksheet INSOLVENCY WORKSHEET Powered By Docstoc
					INSOLVENCY WORKSHEET

Assets and liabilities just before the cancellation of the debt or foreclosure must be entered.

Assets                                                     Amount          Liabilities                                                  Amount
  Checking accounts total                              $         500         Credit card accounts total debt                        $     25,000
  Savings accounts total                               $         200         Medical bills - total unpaid                           $      2,500
  Money market accounts total                          $       1,000
  Brokerage accounts total                                                    Brokerage accounts - total margin debt
  Mutual fund accounts total                                                  Utilities - total past due                            $      1,000
  Annunity accounts total                                                     Child care - total past due
  Commodity accounts total                                                    Income taxes, penalties, interest - total due         $     30,000

  Pension and profit sharing accounts total                                   Court judgments against you - total amount
  401k accounts total                                  $       15,000         401k - total of loans to you                          $      7,500
  Roth IRA accounts total                              $        1,000
  Regular IRA accounts total
  SEP and Simple accounts total
  Education accounts total                                                    Student loans - total debt
  Cash value of life insurance (not term life)                                Life insurance - total of loans to you

  Security deposits (landlords, utilities, etc)        $          300
  Value of investments in businesses you own                                  Sole proprietorship business - total debts

  Autos total - blue book value                        $         8,000        Autos total - total of all auto loans                 $     12,000

  Household goods: (use thrift store value)
    Appliances                                         $         2,000
    Electronics                                        $         1,000
    Furniture                                          $         2,500
    Computers                                          $           200
  Tools - (use thrift store value)
  Jewelery - (use appraised value or 50% of retail)                           Credit Card lines of credit not secured by property
  Clothing - (use thrift store value)
  Collectibles: - use appraised value or wholesale                            Personal loans made to you - total amount
    Books
    Coins
    Stamps
    Painting
    Other Collectibles
  Hobby items: - use appraised value or wholesale                             Total of past due real estate taxes                   $      3,000
    Firearms
    Sporting items
    Photographic equipment
    Other hobby items

  Personal residence - www.zillow.com value            $      250,000         Personal residence - total of mortgages               $    300,000
  Vacation property - www.zillow.com value                                    Vacation property - total of mortgages
  Raw land - use appraised value                                              Raw land - total of mortgages

  Rental real estate - www.zillow.com value                                   Rental real estate mortgages
    Rental real estate - value of property #1          $      200,000           Rental real estate - total of mortgages #1          $    275,000
    Rental real estate - value of property #2                                   Rental real estate - total of mortgages #2
    Rental real estate - value of property #3                                   Rental real estate - total of mortgages #3
    Rental real estate - value of property #4                                   Rental real estate - total of mortgages #4
    Rental real estate - value of property #5                                   Rental real estate - total of mortgages #5
    Rental real estate - value of property #6                                   Rental real estate - total of mortgages #6
    Rental real estate - value of property #7                                   Rental real estate - total of mortgages #7
    Rental real estate - value of property #8                                   Rental real estate - total of mortgages #8
    Rental real estate - value of property #9                                   Rental real estate - total of mortgages #9
    Rental real estate - value of property #10                                  Rental real estate - total of mortgages #10
    Rental real estate - value of property #11                                  Rental real estate - total of mortgages #11
    Rental real estate - value of property #12                                  Rental real estate - total of mortgages #12

  Total Assets                                         $      481,700         Total Liabilities                                     $    656,000

  Total Assets                                         $      481,700
  Total Liabilities                                    $      656,000

  If total Asset > Total Liabilities = Equity
  Then you are not insolvent                           $           -

  If total Asset < Total Liabilities
  Then you are insolvent                               $     (174,300)
FORECLOSURE WORKSHEET
Taxable income from the cancellation of debt upon
foreclosure or repossession                                    Amount
  Enter the amount of outstanding debt immediately
  before the transfer of the property (foreclosure)        $     275,000
  Enter the amount which you remain personally liable
  immediately after the transfer of the property
  (foreclosure)                                            $         -
                                               Subtotal $        275,000 A

 Enter the fair market value of the transferred property   $     200,000 B
 Income from the cancellation of debt upon foreclosure
                                                                            If this amount = zero, then there is no income
 or repossession                                           $      75,000
 Equity amount from the Insolvency Worksheet
                                                           $         -

 Insolvency amount from the Insolvency Worksheet           $    (174,300)
 Taxable income from the cancellation of debt upon
 foreclosure or repossession                               $         -


Gain or Loss from foreclosure or repossession                  Amount
 Smaller of A or B
                                                           $     200,000

 Enter any cash you received from the foreclosure sale     $         -

                                               Subtotal
                                                           $     200,000
 Enter adjusted basis of the property from your tax
 return                                                    $     145,000
 Gain or loss from foreclosure or repossession             $      55,000
then there is no income
INSOLVENCY WORKSHEET

Assets and liabilities just before the cancellation of the debt or foreclosure must be entered.

Assets                                                     Amount            Liabilities                                                 Amount
  Checking accounts total                                                      Credit card accounts total debt
  Savings accounts total                                                       Medical bills - total unpaid
  Money market accounts total
  Brokerage accounts total                                                     Brokerage accounts - total margin debt
  Mutual fund accounts total                                                   Utilities - total past due
  Annunity accounts total                                                      Child care - total past due
  Commodity accounts total                                                     Income taxes, penalties, interest - total due

  Pension and profit sharing accounts total                                    Court judgments against you - total amount
  401k accounts total                                                          401k - total of loans to you
  Roth IRA accounts total
  Regular IRA accounts total
  SEP and Simple accounts total
  Education accounts total                                                     Student loans - total debt
  Cash value of life insurance (not term life)                                 Life insurance - total of loans to you

  Security deposits (landlords, utilities, etc)
  Value of investments in businesses you own                                   Sole proprietorship business - total debts

  Autos total - blue book value                                                Autos total - total of all auto loans

  Household goods: (use thrift store value)
    Appliances
    Electronics
    Furniture
    Computers
  Tools - (use thrift store value)
  Jewelery - (use appraised value or 50% of retail)                            Credit Card lines of credit not secured by property
  Clothing - (use thrift store value)
  Collectibles: - use appraised value or wholesale                             Personal loans made to you - total amount
    Books
    Coins
    Stamps
    Painting
    Other Collectibles
  Hobby items: - use appraised value or wholesale                              Total of past due real estate taxes
    Firearms
    Sporting items
    Photographic equipment
    Other hobby items

  Personal residence - www.zillow.com value                                    Personal residence - total of mortgages
  Vacation property - www.zillow.com value                                     Vacation property - total of mortgages
  Raw land - use appraised value                                               Raw land - total of mortgages

  Rental real estate - www.zillow.com value                                    Rental real estate mortgages
    Rental real estate - value of property #1                                    Rental real estate - total of mortgages #1
    Rental real estate - value of property #2                                    Rental real estate - total of mortgages #2
    Rental real estate - value of property #3                                    Rental real estate - total of mortgages #3
    Rental real estate - value of property #4                                    Rental real estate - total of mortgages #4
    Rental real estate - value of property #5                                    Rental real estate - total of mortgages #5
    Rental real estate - value of property #6                                    Rental real estate - total of mortgages #6
    Rental real estate - value of property #7                                    Rental real estate - total of mortgages #7
    Rental real estate - value of property #8                                    Rental real estate - total of mortgages #8
    Rental real estate - value of property #9                                    Rental real estate - total of mortgages #9
    Rental real estate - value of property #10         $             -           Rental real estate - total of mortgages #10         $            -
    Rental real estate - value of property #11                                   Rental real estate - total of mortgages #11
    Rental real estate - value of property #12                                   Rental real estate - total of mortgages #12

  Total Assets                                         $             -         Total Liabilities                                     $            -

  Total Assets                                         $             -
  Total Liabilities                                    $             -

  If total Asset > Total Liabilities = Equity
  Then you are not insolvent                           $             -

  If total Asset < Total Liabilities
  Then you are insolvent                               $             -
FORECLOSURE WORKSHEET
Taxable income from the cancellation of debt upon
foreclosure or repossession                                     Amount

  Enter the amount of outstanding debt immediately                       Input data into the YELLOW cells
  before the transfer of the property (foreclosure)         $        -
  Enter the amount which you remain personally liable
  immediately after the transfer of the property
  (foreclosure)                                             $        -
                                                Subtotal $           -   A

  Enter the fair market value of the transferred property   $        -   B
  Income from the cancellation of debt upon
                                                                         If this amount = zero, then there is no income
  foreclosure or repossession                               $        -
  Equity amount from the Insolvency Worksheet
                                                            $        -
  Insolvency amount from the Insolvency Worksheet           $        -
  Taxable income from the cancellation of debt upon
  foreclosure or repossession                               $        -


Gain or Loss from foreclosure or repossession                   Amount
  Smaller of A or B
                                                            $        -
  Enter any cash you received from the foreclosure
  sale
                                                Subtotal
                                                            $        -
  Enter adjusted basis of the property from your tax
  return                                                    $        -
                                                                         If this amount > zero, then there is a taxable capital gain.
  Gain or loss from foreclosure or repossession             $        -   If this amount < zero, then there is a deductible capital loss.