Divorce Taxation

Description

Take the Work Out of Divorce Tax Planning

Whether you are structuring agreements, advising clients, negotiating with adversaries, or presenting to the court, it is important to have a clear understanding of the tax consequences. However, lack of funds or time to hire a tax expert sometimes leaves you wandering alone through this complicated area. Now there’s a roadmap.

This plain English manual walks you step-by-step through the most commonly arising trouble spots in property distribution, support, and more. This answer book is intelligently organized and indexed, well-supported with citations, and most important, loaded with practical advice. Divorce Taxation will help you sidestep problems in these areas:

• Property aspects of dissolution
• Alimony and separate maintenance payments
• Temporary support payments
• Child support
• The dependency exemption and child tax credit
• Medical expenses for dependents
• Deductibility of attorney’s fees
• The kiddie tax
• Joint returns
• Innocent spouse election and equitable relief
• Retirement benefits, QDROs and IRAs
• Stock options

Complicated rules can slow down your progress as you work your way through the taxation pitfalls and opportunities that abound in divorces. Divorce Taxation quickly guides you through trouble spots and alerts you to potential tax savings in property distribution, support, and more. It offers on-target explanations, examples, specimen clauses, forms, checklists, tables, and other practical planning tools—all designed to reduce the work in divorce tax planning. This problem-solving book is loaded with how-to gems like:

• How to structure make-up alimony payments to side-step income recapture. Section 3.9.2.2
• How to transfer an IRA tax-free. Section 14.8
• How to avoid non-deductible child support treatment. Section 3.8.2
• How to qualify alimony as taxable and deductible. Section 3.5
• How to bypass tax on interest payments. Section 2.4.2
• How to enforce the record requirements of property transfers. Section 2.1.4
• How to shift the dependency exemption and the child tax credit to the non-custodial parent. Section 5.1.5
• How to deduct a portion of the attorney’s fees. Section 7.5

The book includes appendices with proposed orders and forms, clauses to achieve Lester results, and the Temporary Regulations which are still in force.

REVISION 22 HIGHLIGHTS

With this new edition, we welcome a new author, attorney Ross E. Schulman, of Woodward, Pires & Lombardo, P.A., in Naples, Florida. Attorney Schulman has updated every chapter in the book and added a new chapter on the Corporate Transparency Act. The highlights include new and expanded coverage and forms on issues related to:

Property Transfers & Distribution of Assets and Liabilities:

• Dividing Real Property in Divorce: Tax Strategies and State Law Considerations
• Understanding IRC §1041 and carryover basis
• Tax mitigation strategies for the receiving spouse
• Understanding IRC §1031 exchanges in divorce
• State laws/restrictions (e.g., homestead considerations)

Tax Aspects of Valuation and Net Income

• Obtaining necessary tax information from a spouse(s)
• Practical strategies to minimize the kiddie tax
• Key IRS and IRC references

Kiddie Tax

• Obtaining necessary tax information from a spouse(s)
• Practical strategies to minimize the kiddie tax
• Key IRS and IRC references

Tax Filing Status

• Advantages and disadvantages of filing jointly
• Benefits of head-of-household status
• The marriage penalty: how it works; examples
• Compelling a spouse to sign a joint return

Estate, Gift and Trusts

• 529 Plans: governing principles; gifts and divorce

Foreign Nationals, Assets & Income

• Tax planning for digital assets in international divorces

The Corporate Transparency Act [new chapter!]
Impact on Divorce Proceedings:

• Asset discovery and identification
• Valuation of marital assets
• Asset distribution
• Taxation considerations
• Limitations and uncertainties
• Practical strategies for attorneys and spouses

New and updated Forms and Appendices

AND MORE!