Property owned by the payer and paid for by the payer, will not be considered alimony even if the ex-spouse is utilizing the property, and a divorce decree states that payment must be made by the payer for the benefit of the payee.
Child support payments are non-deductible to the payer and non-taxable to the recipient.
3. C Jim's cost basis in the stock will be $70,000. When he sells the stock, he will have a taxable gain on the profit above the original cost basis. There is no deduction for property ordered to be transferred in a divorce decree.
The purpose of the qualified domestic relations order or QDRO is to inform and authorize the IRA custodian or 401k plan administrator on the court's ruling of the splitting of the retirement accounts.
Remember the acronym "C-WALT-WINN" for all the community property states. They include: California, Washington, Arizona, Louisiana, Texas, Wisconsin, Idaho, Nevada and New Mexico.
In community property states, the death of the first spouse allows both halves of the property to be "stepped-up" to the full FMV at date of death. So, Rose's new adjusted cost basis in the home would be $400,000.
Personal FinanceThe spousal support that is paid out after a divorce can have varying tax implications. We'll look at what you need to know to settle on the best tax solution.
RetirementMishandling how you define and allocate retirement-plan assets in a divorce can cost you plenty in taxes and aggravation. Here's how to do it right.
InvestingA total return swap is a contract in which a payer and receiver exchange the credit risk and market risk of an underlying asset.
RetirementDivorce is never fun, but knowing the rules and anticipating the impact of retirement plan division and pension payouts can make things easier.
Personal FinanceWhen they get divorced, men and women make different types of mistakes. A strategic primer.
InvestingMoney orders are usually the least expensive way to send "cleared" funds to pay a bill (or traffic ticket). Here's how they work and what to watch out for.
Personal FinanceWith longer lives and women's greater financial independence, divorces at 50+ are soaring. How to avoid money trouble when you sever ties with your spouse.
InvestingThe amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
RetirementThese are the answers to five common questions on how to handle retirement accounts when couples divorce.
TaxesIf your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.