Divorce: Case Study

The profit from selling the family’s main residence is not considered to be a taxable gain because the family lived there for more than 2 years within the past 5 years and because the gain on the sale was less than $500,000. The amount of the exclusion for the couple is $296,000.

* Gift Tax: living transfer of property; $14,000/yr/donee exclusion ($28,000 if joint), unlimited marital & charity deduction, once in a lifetime exemption for gifts & estate of $5,340,000

-Spouse B’s $8,000/month for 11 months of income from work because these are taxable wages that are paid to Spouse be for employment.

A) A taxable gift may occur when property is sold in an arm's length transaction for less than its FMV.

____ 26. When a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange

(3) What amount of loss is allocable to the limited partner, Dr. Ashin, in this taxable year?

(TCO B) From the information given below, determine Marcie's gross income for tax purposes. Salary $40,000 Interest (checking account) $50 Cash received as birthday gift $900 Dividends (mutual funds) $500 Inheritance received on father's death $22,000 Cash received from insurance for accident

into a newer home that is located in the suburbs further from his job. The old house was purchased for $140,000 and has a market value of

During the transaction, if the transferor receives boot, section 351(b) requires them to recognize the gain (capital, long-term, or short-term) equal to the lessor of the gain that would be recognized under section 1001 if the transferor were treated as selling property transferred and the fair market value of the boot received. Under section 351(b)(2), no such loss of any realized loss to be recognized (4)(8).

Nothing is included in Decedent’s gross income, because under section 2035(d), Subsection (a) and paragraph (1) of subsection (c) shall not apply to any bona fide sale for an adequate and full consideration in money or money’s worth.

Alimony is a legal obligation to provide financial support to one’s spouse before or after marital separation or divorce. Traditionally, the husband was responsible for paying alimony to a separated or former wife but since the 1970’s, thanks to gender equality movements and now to changing marital laws, both spouses are now legally recognized for paying alimony to one another in cases of marital separation or divorce. Though it is often required to be paid on top of child support, in cases where the separated or divorced couple has children, alimony is an entirely

Clarkson held jointly with his wife, an equity in their home. The house had cost $72,000 to build in

Whether you are seeking to recover alimony or you are concerned that your spouse will be requesting it, let us

Shoemaker] shall pay to [Ms. Shoemaker], alimony in an amount of Four Thousand Five Hundred Dollars ($4,500.00) per month for Year One (first 12 months), Five Thousand Dollars ($5,000.00) per month for Years Two through Five (second 48 months), and Four Thousand Five Hundred Dollars ($4,500.00) per month for Years Six through Sixteen (final 120 months), for her support, on the first day of each month starting on the first day of August, 2012, for so long as the parties live separate and apart and until the first to occur of any of the following events: (a) death of either party, (b) that date which is sixteen (16) years from the date of this Agreement, or (c) [Ms. Shoemaker] remarries.

It is believed that men are the least affected by divorce. However this doesn’t mean that they do not suffer at all. Indeed, men suffer financially from divorce; they are obliged to support their children as well as their ex-wives. And because before divorce the responsibility was shared by both husband and wife, divorced men cannot always afford to pay alimony, thus they may be