October 18, 2016

What Tax Consequences Does the Sale of the Family Home Incident to Divorce Create?

Gain from the sale of real property squarely meets the definition of gross income per IRC § 61(a)(3). The amount of gain realized is determined under […]
October 17, 2016

What Is the Tax Impact of the “Out Spouse” Paying the Mortgage, Property Taxes, Upkeep on the Family Home Post Divorce

In most divorces the continued joint occupancy of H and W while a sale of the family residence is pending is a nonstarter. Besides most divorcing […]
October 16, 2016

Are Legal and Professional Fees Paid to Secure a Divorce Deductible by Either Spouse?

Under Reg. 1.262-1(b)(7) attorney and professional fees paid in securing a divorce, separate maintenance agreement, or decree for child support are generally nondeductible by either spouse. […]
October 14, 2016

How Are Losses and Liabilities Incident to a Divorce Handled under §1041?

The non-recognition treatment under §1041 applicable to gains is equally applies to losses where a transfer is subject to §1041. IRC § 1041(a) dictates that the […]
October 7, 2016

What Tax Consequences will I Face When My Property Was Previously Depreciated and then Transferred Incident to a Divorce?

IRC Reg. § 1.1041-1T(d) and Q& A-13, dictate potential surprising hidden negative tax consequences where a property has been previously depreciated under IRC § 179 and […]
October 6, 2016

Will §1041 Apply to Transfers Made Prior to the Marriage, Transfers Not More Than One Year After Divorce, or to Transfers Made to Third-Parties?

Section 1041 does not apply to property transfers that take place prior to marriage. Accordingly, practitioners need to be on the lookout for a release of […]