Discussion:Divorce Research

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It's a good overview.}} It's a good overview.}}
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 +{{ForumReplyPost|UserID=Dude7707|Date=6 October 2009|Text=Husband(H) living in WA State moves out 3/15/09, No Dependents, Divorce final 9/30/09.
 +
 +
 +Recommendation:
 +
 +1. H and S File as Single for 2009
 +2. H reports his own Sch C Income/Expense since not operated or shared with Wife (S)
 + Busn is Sole Proprietorship.
 +3. S reports her own Income (W-2, Int, Div.) and Fed W/H
 +4. Any Mtg Int or R/R Taxes to be reported by respective party who paid items.
 +
 +I have been told by other accountants, since H was out of home more than 6 mos. just file Single, report your own respective income and just include #4 items specifically paid by either H or S.
 +
 +While other accountants require Income/Expenses up to separation date 3/14/09 should be allocated 50/50 to H & S and subsequent activity treated separately by respective parties.
 +
 +It is my understanding, if H is not living in personal residence for entire year then and only then can you report all Income/Expenses separately otherwise needs to be allocated 50/50 to 9/28/09 in this Example.
 +
 +
 +Comments/Suggestions? }}

Revision as of 21:41, 6 October 2009

Discussion Forum Index --> Basic Tax Questions --> Divorce Research
Discussion Forum Index --> Tax Questions --> Divorce Research

Chardi7 (talk|edits) said:

6 October 2009
I have searched TA to try and find a discussion thread on handling the taxes for someone who is recently divorced. It seems like most of the threads out there are specific issues. What I want to know is if anyone has any good suggestions on where to find some general information on tax issues for the newly divorced? I have read publications 503 and 504 and checked out a website called divorce360. Any suggestions on where I can go for some more research?

Thanks,

Chris

Kevinh5 (talk|edits) said:

6 October 2009
the only unique issues for divorced taxpayers are:

potential conflicts of interest (both want to claim same child or claim all of the mortgage interest)

alimony

child support

dependency exemptions, child tax credit, head of household, dependent care credit, tuition & fees, etc questions regarding the children - (this is the hottest contested area)

principal and 2nd residence issues

transfers incedent to a divorce & gift basis

Blrgcpa (talk|edits) said:

6 October 2009
There are self-study courses about divorce issues.

CrowJD (talk|edits) said:

6 October 2009
Don't forget the QDRO's! http://www.dol.gov/ebsa/faqs/faq_qdro.html

Death&Taxes (talk|edits) said:

6 October 2009
Most important thing they can do???? Check their filing status on the W-4!

Riki EA (talk|edits) said:

6 October 2009
I recently did the NATP self-study course, "Tax Issues of Divorce":

http://www.natptax.com/self-study_tax_issues_of_divor.html

It's a good overview.

Dude7707 (talk|edits) said:

6 October 2009
Husband(H) living in WA State moves out 3/15/09, No Dependents, Divorce final 9/30/09.


Recommendation:

1. H and S File as Single for 2009 2. H reports his own Sch C Income/Expense since not operated or shared with Wife (S) 

   Busn is Sole Proprietorship.

3. S reports her own Income (W-2, Int, Div.) and Fed W/H 4. Any Mtg Int or R/R Taxes to be reported by respective party who paid items.

I have been told by other accountants, since H was out of home more than 6 mos. just file Single, report your own respective income and just include #4 items specifically paid by either H or S.

While other accountants require Income/Expenses up to separation date 3/14/09 should be allocated 50/50 to H & S and subsequent activity treated separately by respective parties.

It is my understanding, if H is not living in personal residence for entire year then and only then can you report all Income/Expenses separately otherwise needs to be allocated 50/50 to 9/28/09 in this Example.


Comments/Suggestions?

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