[26-Mar-2020] Philip's 341 Creditor Meeting - When what should be 5 minutes becomes an eternity.

[actually]

Potentially stupid question for @SoapQueen1, @Beetus Knuckles, @marlintan, and @AnOminous: the trustee asked for the transactions from both Paypal accounts for the last 6 months. Is that the 6 months prior to the bankruptcy filing (i.e., the 6 months he covered in the income and expenses report), or is it the 6 months prior to the 341 meeting? If it's the latter, what is she looking for? Hidden income? Frivolous spending like that of WWE Champions?

 

[Sir Wesley Tailpipe]

Potentially stupid question for @SoapQueen1, @Beetus Knuckles, @marlintan, and @AnOminous: the trustee asked for the transactions from both Paypal accounts for the last 6 months. Is that the 6 months prior to the bankruptcy filing (i.e., the 6 months he covered in the income and expenses report), or is it the 6 months prior to the 341 meeting? If it's the latter, what is she looking for? Hidden income? Frivolous spending like that of WWE Champions?

Both.

 

[Kiwi Lime Pie]

Nothing seemed too surprising with what happened in the meeting. If anything, DSP appeared to double down on what he claimed in his paperwork -- paperwork that Kiwis already examined in detail to look for and point out the various errors, omissions, and inconsistencies that could pose an issue for the bankruptcy filing. The fact the trustee asked the questions she did and asked for six months worth of PayPal transactions shows she's not wiling to take DSP's statements and double talk at face value and she wants to give his numbers the further scrutiny they need and deserve. To put it in forum speak, she (rightfully) pressed X to doubt.

If the mods successfully verify the user that claimed to purchase DSP's Citi debt, this becomes even more entertaining than it already is.

it gets weird with sole proprietorships, they aren't under any legal obligation to have a seperate business account

There's no legal obligation but it makes your book keeping hellish and expensive because now either you or a book keeper have to record every transaction in your account. A second account costs a few bucks a month and banks will usually let you make sub accounts. Literally just something to sort one kind of money from another. If you run any kind of business without its own account you're either naive or exceptional.

TL;DR - Mixing business and personal funds is a very bad idea. Do not try this at home, etc.

Spoiler: Additional Detail

Commingling business & personal funds can cause the most problems if one's tax return were to be examined (aka audited). An examiner that can't easily determine which deposits are business receipts and which are personal amounts generally assumes that all of them are taxable business receipts. The best way to avoid this is to have detailed statements that show the breakdown of deposits into business income and personal amounts. However, those that commingle their business and personal finances tend to lack this level of detail in their record-keeping.

Anyone with a sole proprietorship -- whether unorganized, a county-level DBA, or a one-person LLC registered with the state -- can avoid this issue by obtaining an EIN for the proprietorship and opening up a business account that's used exclusively for business income and expenses. Any amounts needed to pay personal expenses can be recorded as draws against equity, making it easier to show those amounts as checks or transfers going out of the business account and into a personal account.

I misread. The 2% rule applies to an employee, not biz owner. I am looking at the games as a 'tool' to be able to do work.

Unreimbursed employee expenses that exceed 2% of one's adjusted gross income were eliminated as an itemized deduction under President Trump's tax reform bill. However, if the reforms aren't renewed beyond 2025, I believe this is one of the deductions that would return to Schedule A.

That said, some states implemented this deduction on their tax returns to make up for the elimination of it as a federal deduction. People should check their state treasury/department of revenue (or with their tax professional) to see if their state is one of them that did this.

trust me, having done many budgets, you have to be able to have a useful life for any CAPEX, I am unaware of any guidance from the IRS on games, but you would have a hard time proving that they do, in fact, have a useful life, so I'm more of the mind that it would be operating expense, like printer paper, it doesn't go bad generally.

At present, computer software appears to have a useful life of 3 years. Under certain conditions, it's also eligible for the Section 179 deduction and the special depreciation allowance (Source / Archive).

 

[Richard Harrow]

Potentially stupid question for @SoapQueen1, @Beetus Knuckles, @marlintan, and @AnOminous: the trustee asked for the transactions from both Paypal accounts for the last 6 months. Is that the 6 months prior to the bankruptcy filing (i.e., the 6 months he covered in the income and expenses report), or is it the 6 months prior to the 341 meeting? If it's the latter, what is she looking for? Hidden income? Frivolous spending like that of WWE Champions?

She's probably requesting an itemization for that particular account. As I've said awhile back, all of his accounts will be looked at transaction after transaction. If he bought so much as a candy bar they'll know it. She's not expected to go through it at the initial meeting. The scrutiny comes in down the road once she's able to sit down and thoroughly analyze the claim. The "Citibank" guy kinda got made because of the itemization request this early in the game. This was possibly the longest 341 I've ever witnessed.

 

[marlintan]

At present, computer software appears to have a useful life of 3 years. Under certain conditions, it's also eligible for the Section 179 deduction and the special depreciation allowance (Source / Archive).

Computer software is up to the digression of the opinion of the auditor, Excel 97 is less useful than 03, and harder to do certain things with, but, he doesn't play computer games. He plays console games, and, I'm quite certain there is no precedent on amortizing that. Especially in the vein of a "lets player". He barely makes any effort to itemize his business expenses, they all fall together with his personal expenses... I believe that he will die on the hill that his games and systems, computers, tvs, are not his personal property, even though he paid for them out of his pocket, and, i doubt he ever bothered to reimburse himself specifically for those expenses from the business account, because he doesn't have a business bank account. NOT A NUDNIK, NOT A CHILDREN'S ENTERTAINER.

 

[tzgnilki]

it's easier to do book-keeping with a seperate business account

we all know dsp will only do the bare minimum

 

[Kheapathic]

Was listening to his hearing again and it's obvious he's trying to hide shit; but question for the more savvy amongst us. What's the legalities of "business" items pulling double duty.

Outside of his consoles, he listed his (one) computer is for business and cellphone is for business. It's silly to think that he does nothing else with those items, and I doubt he answer his cellphone with "Burnell Productions, how may I help you sir or ma'am?" So how much double-duty do items get to perform until the business/personal line turns blurry or is too much? Or is it like his utilities, just a fraction of them can be discounted?

 

[marlintan]

we all know dsp will only do the bare minimum

i disagree, bare minimum would be paying his bills, he stoutly refused to pay for the home he bought in CT, he's just a piece of garbage, solid waste services should come take his ass to the dump, don't have to pay mortgage there.

 

[DiabeticSP]

He seemed confused about the thrust of Nancy's questioning there, he apparently slipped into an entirely different argument that he's had before in an entirely different context, namely, whether or not tipping is mandatory (through emotional manipulation of the easily manipulated)

Nancy didnt care WHY people gave him money. All she cared was that people DID give him money.

It doesnt matter if its salary, hourly, or 'tips'. Nigga got paid.

'Streamlabs gave you money?" "No they dont pay me" with no explanation is such a ridiculous fuck up by Phil I can't believe it.

Why not admit streamlabs is just who processes your tips?

 

[Kheapathic]

Why not admit streamlabs is just who processes your tips?

He "believed" Burnell Productions, his business, which holds his name in its title, was a sole proprietorship.

He "believed" he's subscribed to three online gaming subscription services. Seeing how Steam is free and from what I understand, Origin and Epic are too (not that he PC games, bus just saying), he doesn't know how many business/game services he spends money on.

The dumb bastard did absolutely zero fucking preparation for this meeting and doesn't know his own fucking life.

 

[King Daddy Telomerase]

Why not admit streamlabs is just who processes your tips?

It was just Phil doing his usual semantics thinking he's outsmarting everyone while he's coming off as a sleazy asshole.

Everything he said concerning tips was the best part of the meeting. That's where it showed the bubble he lives in, senselessly making things worse for himself. Phil being Phil.

 

[DiabeticSP]

It was just Phil doing his usual semantics thinking he's outsmarting everyone while he's coming off as a sleazy asshole.

Everything he said concerning tips was the best part of the meeting. That's where it showed the bubble he lives in, senselessly making things worse for himself. Phil being Phil.

Phil trying to explain what a tip is to Nancy was fantastic.

Phil cannot comprehend what she's asking about and instead tries to explain that he gets tipped, like a waiter.

See, its not a PAYMENT. Its not a SALARY. Its just... money. Money people gave him. For doing his job. Because they wanted to.

He's a fucking moron.

 

[Kiwi Lime Pie]

Computer software is up to the digression of the opinion of the auditor, Excel 97 is less useful than 03, and harder to do certain things with, but, he doesn't play computer games.

Agreed. If DSP was totally transparent in his filings and honest about income, expenses, assets, and liabilities/debt, an examiner might be willing to give a favorable opinion. For anyone that tries to play fast and loose as DSP has, the examiner's mood usually takes an 180-degree turn and they begin to deny any questionable business deduction and demand further proof/substantiation for the legitimate ones.

'Streamlabs gave you money?" "No they dont pay me" with no explanation is such a ridiculous fuck up by Phil I can't believe it.

Why not admit streamlabs is just who processes your tips?

It was just Phil doing his usual semantics thinking he's outsmarting everyone while he's coming off as a sleazy asshole.

Everything he said concerning tips was the best part of the meeting.

I don't think anyone is surprised that DSP can take a simple yes/no question and give a non-sequitur reply -- something that most people find off-putting and something that's not a good idea in a legal setting such as this meeting.

If he's actually trying to hide or understate his tips as some have claimed, he might not want to admit this is where and how those tips flow through to him.

 

[AnOminous]

I don't see the importance of this indeterminable time when Phil claimed insolvency.

We know when he claimed it, and transfers or expenditures can be presumptively fraudulent within a certain amount of time before then, but they can also be fraudulent a longer time beforehand if the debtor was aware of deepening insolvency and continued to worsen his state. This is why his lawyer didn't want him answering this stuff if possible.

She had no real basis to tell him to refuse to answer but you could notice her being disruptive and interrupting a lot at this point to keep Phil from saying shit any more stupid than he's already seen. If your lawyer seems to be getting agitated, but isn't telling you outright not to answer (because they can't), TAKE THE HINT. Say as little as possible. Get evasive.

 

[AnOminous]

Potentially stupid question for @SoapQueen1, @Beetus Knuckles, @marlintan, and @AnOminous: the trustee asked for the transactions from both Paypal accounts for the last 6 months. Is that the 6 months prior to the bankruptcy filing (i.e., the 6 months he covered in the income and expenses report), or is it the 6 months prior to the 341 meeting? If it's the latter, what is she looking for? Hidden income? Frivolous spending like that of WWE Champions?

I'd assume the five months previous to the one he actually submitted, but I don't know. I'd also assume she's looking for all that and more. What she's already seen in that one month has weirded her out enough she wants more. I wouldn't be surprised if she expands that even further but that might require an order from the court for more intense discovery.

 

[marlintan]

Agreed. If DSP was totally transparent in his filings and honest about income, expenses, assets, and liabilities/debt, an examiner might be willing to give a favorable opinion. For anyone that tries to play fast and loose as DSP has, the examiner's mood usually takes an 180-degree turn and they begin to deny any questionable business deduction and demand further proof/substantiation for the legitimate ones.

If I were that trustee, I would be concerned about getting autism from trying to decipher his homemade P&L (Profit & Loss, a Income Statement).

 

[Kosher Dill]

and I doubt he answer his cellphone with "Burnell Productions, how may I help you sir or ma'am?"

Of course not. He answers his phone with "Hi Mom."

 

[MoonRocker]

How can Phil claim to own a sole proprietorship (Burnell Productions) But can’t produce an EIN nor has a business bank account that he should be using as a funnel for any profit that he generates?

The fact that his “tax attorney” failed to instruct him of something that simple demonstrates that he’s probably using H&R Block or some other corporation that inputs your tax information through TurboTax or some shit.

Just based on his inability to separate his personal expenses from his business expenses should be grounds for dismissal for his bankruptcy.

If he’s not willing to be honest about his initial filing, what makes anyone think he’d be honest in trying to get out of the financial mess he’s created for himself?

 

[lavrentiyberia]

Phil trying to explain what a tip is to Nancy was fantastic.

Phil cannot comprehend what she's asking about and instead tries to explain that he gets tipped, like a waiter.

See, its not a PAYMENT. Its not a SALARY. Its just... money. Money people gave him. For doing his job. Because they wanted to.

He's a fucking moron.

DarksydePhil 341 Meeting 03/26/20 Twitch Rip.

Meeting with DarksydePhil on 03/26/20 regarding 341 Meeting for Chapter 7 Bankruptcy. Recording ripped from: https://www.twitch.tv/fatbalddracula

youtu.be

Just listen to this whole exchange again, I urge everyone to go and do this right now. Listen to how badly he misunderstands her questions, and listen to the WORDS he's using they're absolutely insane! He CANNOT speak plainly about money, he is using all kinds of words that he thinks are synonyms but they're not! Paypal is not a ‘currency system’ my god he is just so incredibly stupid

 

[Richard Harrow]

DarksydePhil 341 Meeting 03/26/20 Twitch Rip.

Meeting with DarksydePhil on 03/26/20 regarding 341 Meeting for Chapter 7 Bankruptcy. Recording ripped from: https://www.twitch.tv/fatbalddracula

youtu.be

Just listen to this whole exchange again, I urge everyone to go and do this right now. Listen to how badly he misunderstands her questions, and listen to the WORDS he's using they're absolutely insane! He CANNOT speak plainly about money, he is using all kinds of words that he thinks are synonyms but they're not! Paypal is not a ‘currency system’ my god he is just so incredibly stupid

I don't know why he started sperging about tips. "Tips" in the traditional sense are still considered taxable income by the IRS so I don't see how that WOULDN'T factor into his income. He also has a second Paypal which is interesting since he's declaring personal bankruptcy yet combining all of his personal and work assets into a single claim, which allegedly he's able to do. So he seems like he's one foot in the business realm and one foot out with that second account.