All Entries Tagged With: "tax law"
May 2012 – Tax & Family Law
Highlights from the May 2012 Contra Costa Lawyer edition include Tax Traps That Can Arise During Divorce – by Mark Ericsson; QDRO: Malpractice Lurking – by Harry L. Styron ; Getting the 411 from the 911: Obtaining Information and Reports from Law Enforcement Agencies in Family Law Matters – by Richard Grossman; Independent Contractor or Employee? The Consequences of Getting it Wrong- by Janet L. Everson and Matthew A. Cebrian; Another Offshore Assets Reporting Requirement- by Jenny C. Lin
To File or Not To File: How the Timing of the Bankruptcy Can Impact the Exclusion of Cancellation of Indebtedness Income
In this era when homes are often worth less than the loans they secure and of dropping or nonexistent incomes, more and more people are forced to consider walking away from their homes. In a foreclosure or short sale, the banks holding the note and deed of trust will receive less than full value for their note. This gives rise to cancellation of indebtedness income. It has long been tax policy that when a debtor is released from a debt, that person has become wealthier and therefore realizes ordinary income to the extent of that increase of wealth. One of the driving forces in filing for bankruptcy is protection against taxes arising from cancellation of indebtedness income.
Inside: May 2012 Guest-Editors’ Column
This issue represents a “marriage” of the family law and tax sections. These are the two oldest sections of the bar. There has been a lot of bantering as to who was first. We may need arbitration by the bar. It’s clear that if we are going to settle the dispute by tug of war, the tax section will need a tractor.
Tax Traps That Can Arise During Divorce
Let’s be a fly on the wall and look over attorney Alice’s shoulder during her first conference with Mary. Mary is divorcing George and the first words out of her mouth are:
Inside: Guest Editor’s Column
In this issue, we looked for the tax topics that we face every day in our respective practices. We explore the recapture of tax in the bankruptcy setting; ERISA issues for the business and estate …
Gains from Investments in Small Business Stock Acquired During 2011 May Be Tax Free
In response to the economic crisis that occurred starting in late 2007, Congress has enacted a number of measures intended to spur investment and business activity. The purpose of this article is to …
New Tax World for Registered Domestic Partners
Articles on Taxes from the Family Law practice area perspective.
Disclosing Offshore Accounts – A Second Chance
Your client of many years, a successful second-generation winery owner, just confided that she has had bank accounts in France in her name for decades.
Her now-deceased parents opened the accounts for her when they inherited …
Substantiating the Tax Treatment of Settlement Payments
In order to assess the true economic value of a settlement proposal, a plaintiff must consider whether a settlement payment would constitute ordinary income, excludable (non-taxable) income, or proceeds from the disposition of a capital …
New U.S. Tax Court Rules Effective May 5, 2011
On May 5, 2011 the United States Tax Court announced the adoption of amendments to its Rules of Practice and Procedure. The Rules, as amended, are available on the Court’s web site, www.ustaxcourt.gov. The proposed amendments were originally published on December 20, 2010 with an invitation for public comments. A number of comments were received by the March 7, 2011 deadline and the amendments as finalized reflect revisions prompted by the comments received. This article will briefly outline the principal changes made by the amendments and the explanations for the changes.
Help! I Think My Spouse Is Cheating (On His Taxes)
If you hear these words from a client, chances are that the story will be interesting.
Divorce, Children and Taxes
One of the most misunderstood and seldom thought-out areas of family law are the requirements and interplay of claiming children as dependents, claiming head of household status, claiming child-related credits and the kiddie tax. The following is a general review of these areas. As is typical of income tax law, there are nuances and exceptions too numerous to discuss in this brief article. However, it is hoped that the following will raise the attorney and client’s awareness of the tax consequences related to children and custody.
Keeping it
In the world of tax, it is about keeping it, not making it. We share our revenues with Uncle Sam (and Uncle Jerry). Last December, Congress and the President made history with the Tax Relief, …
