Previously, we examined the paragraph and subparagraphs defining “divorce or separation instruments.” Now let’s take a look at which sections of TCJA incorporate these subparagraphs. Sections incorporating all three subparagraphs of the definition of divorce or separation instrument Post-2018. The two sections of TCJA that adopt all three subparagraphs of…
The repeal of the alimony tax sections for the inclusion of income and deduction has an ancillary impact on other divorce tax issues. The effective date for all ancillary issues discussed in this article is December 31, 2018, the same as the alimony repeal. These December 31, 2018, changes shall…
Divorce was hard enough, and now alimony tax reform. Do you feel good or bad about alimony? No matter your answer, this alimony tax reform revolutionizes the divorce arena, and you need to know how it may affect you and your clients. Judges need to know how it might affect…
Yancey v. Comm’r, T.C. Memo. 2017-59, 2017 WL 1289451 (2017) Facts: A husband and wife filed joint returns. The returns were prepared by the wife. The returns understated the amount of tax due, mostly because they wrongly double-counted certain gambling losses incurred by the husband. The IRS assessed a deficiency.…
Dear Carolyn, My daughter just graduated from high school, and she is college bound. Her father and I divorced three years ago. Her father paid child support, but I understand child support is ending now as she is already 18. I thought her father would surely pay (or at least…
Dear Carolyn, I think my husband and I may be getting separated and divorced, and I am concerned about our 2016 tax return, which has not been filed yet. The tax return is under an extension. My husband has a small business in Greensboro, and I have no idea if…
Stapleton v. Comm’r, T.C. Memo. 2015-171, 2015 WL 5049758 Facts: A father and mother had two children. The parents were never married. No court was ever asked to decide custody, but the parents agreed that the father would have the children every Monday and Wednesday night and every other weekend. In…
Hiramanek v. Comm’r, T.C. Memo. 2016-92, 2016 WL 2763870 (2016) Facts: The husband prepared a joint tax return for tax year 2006 and asked the wife to sign it. She refused to sign without reading it, and he permitted her to take a quick glance at the return. She noticed that…
Family Chiropractic Sports Injury & Rehab Clinic, v. Comm’r, T.C. Memo. 2016-10, 2016 WL 234515 (2016) Facts: Husband and wife operated a chiropractic The practice had an Employee Stock Ownership Plan (“ESOP”). Husband and wife were the only participants. The parties were divorced in Iowa. The decree was silent on…
Belot v. Comm’r, T.C. Memo. 2016-113, 2016 WL 3248031 (2016) Facts: During their marriage, the parties operated a dance studio. The business consisted of an S corporation which was the actual studio, an LLC which operated a boutique selling dance clothing, and another LLC which owned the real estate on…