IRS Publication 504

DEFINITION of 'IRS Publication 504'

A document published by the Internal Revenue Service that provides tax guidelines for individuals who are separated or divorced from their spouses. IRS Publication 504 outlines how to treat property or assets that are transferred between separated or divorced individuals, as well as the treatment of alimony and child support.

BREAKING DOWN 'IRS Publication 504'

The publication also covers which divorce- or separation-related expenses can be deducted, how taxes should be withheld and how to estimate taxes. Claiming dependents, for example, can become more complicated when spouses divorce, with one parent being considered the custodial parent and receiving the lion's share of the tax benefit.

RELATED TERMS
  1. Institute For Divorce Financial ...

    An organization committed to educating financial professionals ...
  2. Alimony

    Payments made to a spouse or former spouse under a separation ...
  3. Alimony Payment

    A periodic pre-determined sum awarded to a spouse or former spouse ...
  4. Academy Of Financial Divorce Practitioners

    An organization dedicated to the development of financial expertise ...
  5. Child Support

    The monetary payments that are made from one ex-spouse to another ...
  6. Section 1041

    A section of the Internal Revenue Code that mandates that any ...
Related Articles
  1. Personal Finance

    How Divorce Can Adversely Affect The Economy

    Divorce not only affects the people involved, it also affects the nation's economy.
  2. Investing Basics

    Divorce Funding: A New Investment Opportunity?

    Learn how companies are making millions investing in the broken marriages of others. Discover how one person's divorce can be another's investment opportunity.
  3. Financial Advisors

    Top Tips for Helping Clients Through a Divorce

    It may take a delicate touch to properly assist clients who are going through a divorce. Here are some tips.
  4. Personal Finance

    Avoid These 5 Financial Mistakes in a Divorce

    To ensure you get what's rightfully yours in a divorce, avoid these financial mistakes.
  5. Retirement

    Divorcing? The Right Way to Split Retirement Plans

    Mishandling 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.
  6. Retirement

    Become A Certified Financial Divorce Analyst

    Use your financial knowledge to help people preserve their financial integrity after a failed marriage.
  7. Insurance

    How Life Insurance Works in a Divorce

    Learn the implications of life insurance in a divorce situation, and identify the steps you should take to ensure your policies are sorted out post-divorce.
  8. Budgeting

    You Can Now Crowdfund Your Divorce

    Crowdfunding can now be used to raise money needed for a divorce.
  9. Credit & Loans

    Credit And Debt Management: Credit And Relationships

    by Cathy ParetoCredit obligations are a serious matter, and we have already established the important role your credit score plays in your life. As we've discussed, you may want to think twice ...
  10. Products and Investments

    Divorce and Annuities: What Clients Need to Know

    Divorce can be the most financially devastating event in a person’s life. Here’s what your clients need to know about handling annuities in a divorce case.
RELATED FAQS
  1. How can I protect my business from my spouse during a high net worth divorce?

    Understand what constitutes a high-net-worth divorce, and learn how business owners can protect their companies when going ... Read Answer >>
  2. Why are high net worth divorces considered more challenging than other divorce cases?

    Learn about some of the complexities and common pitfalls associated with divorce proceedings involving high-net-worth individuals. Read Answer >>
  3. Do I have to pay capital gains tax when I sell my home?

    My husband and I were divorced in 2011. We owned our house jointly and he lived there after the divorce until his death in ... Read Answer >>
  4. Can I file single if I am legally married but have not lived with spouse for two ...

  5. When is litigation better than mediation in a high net worth divorce case?

    Learn the variables in a divorce case that most often determine whether mediation or litigation is a better path for the ... Read Answer >>
  6. Who qualifies as "single" for tax or retirement purposes when spouses do not live ...

    For the purposes of taking a deduction for an IRA contribution, the IRS provides special allowances for individuals who are ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center