Divorce and Its Tax Impact : How to Claim

Divorce & Its Tax Impact (T/G 104) covers the warning signs of a "cunning spouse" cornering you into co-liability for underreportings and overdeductions when signing a joint return: Under penalties of perjury; addresses distinctions between child support and alimony, and between alimony and property settlement. Also covered: Preparatory separation of tax issues, When advisable to file separately, The many faces & twists of "Alimony", Making property settlement tax free, Preconditions for "Innocent spouse relief", Likelihood of post-divorce IRS audit. Book jacket.

1. WARNING SIGNALS

1-1

(1)

Examine Your Latest 1040

1-2

(1)

Joint 1040 Means Co-Liability

1-3

(1)

Now, Your "First Signal"

1-4

(1)

Emergence of Cunning Spouse

1-6

(1)

Intentional Underwithholdings

1-7

(1)

How to Find Out

1-8

(1)

Skipping Estimated Prepayments

1-9

(1)

Omitting Substantial Income

1-11

(1)

Exaggeration of Deductions

1-13

(1)

Intercepting Tax Refunds

1-15

(1)

Destroying Tax Notices

1-15

(1)

2. PREPARATORY MATTERS

2-1

(1)

Tax Equality of Spouses

2-2

(1)

Never Inform on Spouse

2-3

(1)

Gather Prior Tax Returns

2-4

(1)

"What Can Happen" Example

2-7

(1)

Protest When Right

2-9

(1)

Deeds & Escrow Papers

2-10

(1)

Document "Your Share" Only

2-11

(1)

Necessary Legal Proceedings

2-15

(1)

Precautions with Attorneys

2-17

(1)

Separation of Tax Issues

2-19

(1)

3. MARITAL STATUS

3-1

(1)

Tax Code Section 7703

3-2

(1)

Four Possible Tax Filings

3-3

(1)

When Filing Required

3-5

(1)

Married Filing Separately

3-7

(1)

Married Living Apart

3-8

(1)

When "Deemed Unmarried"

3-10

(1)

IRS's "Forcing" Stance

3-12

(1)

Filing as Single Persons

3-14

(1)

Head of Household Status

3-15

(1)

Changing Filing Status

3-16

(1)

4. SEPARATE RETURNS

4-1

(1)

A "Don't Do Joint" Example

4-2

(1)

Simplest Option: Married Separate

4-3

(1)

"Living Apart" Tax Problems

4-4

(1)

A "Do-It-Yourself' Option

4-5

(1)

Your Best Option: SMO

4-8

(1)

Making Proper Allocations

4-11

(1)

Allocation Example 1

4-14

(1)

Allocation Example 2

4-15

(1)

Allocation Example 3

4-16

(1)

Treatment of Spousal Support

4-17

(1)

5. CHILD DEPENDENCY

5-1

(1)

The Dependency Exemption

5-2

(1)

Dependent Child Defined

5-3

(1)

If Over Age 19

5-5

(1)

"Total Support" Defined

5-5

(1)

Illustrative Example

5-7

(1)

Maintaining a Household

5-9

(1)

Divorced Parents' Special Rule

5-12

(1)

Release of Claim to Exemption

5-14

(1)

Difficulties with Form 8332

5-16

(1)

Separate Child Support Order

5-18

(1)

6. ALIMONY PAYMENTS

6-1

(1)

Only Cash Payments Count

6-2

(1)

How Deducted/Included

6-4

(1)

What Qualifies as "Alimony"

6-5

(1)

Time Duration of Payments

6-6

(1)

Must Exclude Child Support

6-8

(1)

"When in Doubt" Examples

6-9

(1)

Must Exclude Property Settlement

6-11

(1)

Lump-Sum Settlements

6-12

(1)

A Brazen Example

6-14

(1)

7. PROPERTY DISCLOSURE

7-1

(1)

Key Reference Dates

7-2

(1)

Separate Property Interests

7-3

(1)

Tracing Separate Property

7-4

(1)

Agreement on Separate Property

7-6

(1)

Overview of Marital Property Items

7-7

(1)

How Value Ascertained

7-9

(1)

Consolidation Procedures

7-12

(1)

Also Need "Basis" Info

7-13

(1)

Importance of "Cash Pool"

7-15

(1)

8. PROPERTY SETTLEMENT

8-1

(1)

The Ideal Exemplified

8-2

(1)

Seldom Pure: Mostly Impure

8-5

(1)

Section 1041 Overview

8-9

(1)

Treatment as Gift(s)

8-11

(1)

Meaning of "Incident to Divorce"

8-12

(1)

Transfers "For Benefit of Spouse

8-13

(1)

How One Court Ruled

8-15

(1)

9. ALIMONY/PROPETY DISPUTES

9-1

(1)

Attorney Fees Are Not Alimony

9-2

(1)

Law Firm "Opinion" in Error

9-3

(1)

State Court Order re "Nonalimony"

9-4

(1)

Military Pensions Are Not "Property"

9-5

(1)

A Problem with Stock "Redemptions"

9-7

(1)

Failure to Cite Section 1041

9-9

(1)

Critique of "Susan" Case

9-10

(1)

The "Extrinsic Evidence" Hoax

9-12

(1)

Importance of "Downstream Vigilance"

9-14

(1)

10. INNOCENT SPOUSE RELIEF

10-1

(1)

Overview of Section 6015

10-2

(1)

Is There: Understatement of Tax?

10-4

(1)

How "Innocence" Determined

10-5

(1)

A Convincing Example

10-6

(1)

Now, to Form 8857

10-9

(1)

What the Instructions Say

10-11

(1)

What is "Equitable Relief'?

10-12

(1)

Separate Liability Election

10-13

(1)

Recap of Options

10-15

(1)

11. MORE ON FORM 8857

11-1

(1)

Instructions for "Getting Ready"

11-2

(1)

When to File Form 8857

11-4

(1)

Other Preparatory Considerations

11-5

(1)

The 14 Checkboxes on Form 8857

11-7

(1)

The Eligibility Questions in Part III

11-9

(1)

Now, On to Part IV

11-10

(1)

Highest Relief: Having "No Knowledge"

11-12

(1)

The Reason to Know Criteria

11-14

(1)

Welcome to Form 12510

11-16

(1)

What to Expect from IRS

11-17

(1)

12. FOLLOW-UP MATTERS

12-1

Immediate Post-Divorce Review

12-2

(1)

Likelihood of IRS Audit

12-3

(1)

Head of Household Status

12-5

(1)

Claiming Dependency Exemptions

12-7

(1)

Evidence of Alimony Paid

12-8

(1)

Evidence of Alimony Received

12-9

(1)

"Split Sale" of Residence

12-11

(1)

Reporting on Schedule D (1040)

12-13

(1)

Treatment of Rental Property

12-15

(1)

Notify Banks, Brokers, Payers, Etc

12-18

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Divorce and Its Tax Impact : How to Claim Head of Household Status, Alimony and Child Support, Innocent Spouse Relief, and Settle Property Issues

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