The Mortgage Debt Relief Act of 2007 (Act) generally works to allow tax payers to exclude cancelled debt from income owed on their principal residence. Qualified principal residence indebtedness is any mortgage a person took out to buy, build or substantially improve...
A. Property Settlement Award Not Taxable. A property settlement award or transfer of property between spouses incident to a divorce is not subject to taxation under I.R.C Section 1041. It may be beneficial for the parties to reach an agreement that does not divide...
A. ERISA Qualified Plans. Normally, there is no tax consequence associated with the transfer of an Employee Retirement Income Security Act (ERISA) governed retirement account between spouses incident to a divorce, provided the transfer is effectuated through the...
While there are many facets to the practice of family law, the divorce practitioner should be aware of tax implications associated with the treatment of property and debt division, spousal maintenance, child support, and attorney’s fees. It is important to be versed...
Innocent Spouse Relief, Form 8857. There may be circumstances that your client can seek relief from the payment of income tax, interest and penalties by claiming “Innocent Spouse”. To file this claim, your client needs to fill out IRS Form 8857. Your client is not...
