I would like to ask a very specific question regarding my filing for bankruptcy. Here is my situation:
I own a duplex, and live in one half of it. It was purchased by me and the title is in my name. My mother also has a duplex, which was
purchased by her and is titled in her name.
Together we have a partnership. The rents
from both duplexes are considered as income for the partnership and are listed on our
partnership's tax returns. In addition, the expenses for the duplexes are listed as expenses on the partnership's tax return. Both my
mother and I get a Schedule K for the Partnership, which we then file as an income/loss on our personal tax returns. Overall, our expenses
and incomes from the duplexes are in separate accounts from our personal accounts, although we have, on occasion had money moved in and out
of the accounts as necessary for expenses, either business or personal.
And here comes the crux of my question.. should I:
#1) count the income (and possibly expenses) of both of the duplexes as income on my application for bankruptcy and counting toward the means test
#2) Count the income (and possibly expenses) of just the duplex in my name as income on my application for bankruptcy and counting toward
the means test?
#3) Count just the result of the Schedule K as income/expenses on my application for bankruptcy and counting toward the means test?