Taxation

Question 1

What’s the date when alimony became non-taxable?

Answer 1

1/1/19

Question 2

What do you need to say if you want to keep taxable alimony as taxable?

Answer 2

That the TCJA doesnt apply

Question 3

Do transfers between spouses have capital gain/loss?

Answer 3

No if (1) between spouses or (2) former spouses incident to divorce

Question 4

What does “incident to divorce” mean

Answer 4

Within 1 year of marraige ending, or related to the end of marriage with 6 year soft timeline

Question 5

Define FMV

Answer 5

Price between buyer/seller with reasonable knowledge of all relevant facts and no one is forcing the transaction.

Question 6

How much in capital losses carry forward?

Answer 6

Anything over $3k/year carries forward

Question 7

Tax issues to remember for answers (2)

Answer 7

Capital gains/losses

Taxing of any income

Question 8

Can court have someone withdraw early from IRA if there are penalties like taxes?

Answer 8

Yes.

Question 9

List 7 permissible deductions for child support.

Answer 9

Federa/state local tax
FICA
Mandatory union
Mandatory retirement
Health insuance (not child)
Support for children actually paid
Alimony actually paid

Question 10

H has marital business. Do you tax the sale of biz for ED?

Answer 10

Not necessarily even if sale is “imminent and certain”

Question 11

What is a QDRO

Answer 11

Qualified domestic relations order

Question 12

WHen is alimony recapture a thing?

Answer 12

If FJ entered before 1/1/19

Question 13

When do you recaputure alimony (factors)?

Answer 13

Award is 3 years or less
AND drastically reduced/ends in 2nd or 3rd year
OR in 3rd year, reduces by over $15k

Question 14

When Does gift tax apply to transfers for a divorce?

Answer 14

No, unless spouse isn’t US citizen