- Credits: 14
- Format: Self-Study eBook
- Field of Study: Federal Tax Law
- Author/Speaker: Danny C. Santucci, CPA
|Course ID:||Advanced Preparation:||Experience Level:|
|EWTFM-T-01826-21-S | 6233-CE-0544||None||Overview|
|Published Date:||Program Prerequisites:||Other Course Formats:|
|© July 2021||General Understanding of Taxes||Self-Study eBook|
This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current perspectives on property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined with an emphasis on planning considerations. The cancellation of indebtedness income inclusion rules is examined in the context of debt forgiveness and property foreclosure.
Emphasis is given to the exceptions from income inclusion contained in Section 108. The tax treatment of property repossession under Section 1038 is explored with detail given to the calculation of gain and received property basis. Finally, bad debt treatment under Section 166 is reviewed and critical distinctions are made between business and non-business debts.
- Basic Marital Tax Matters
- Transfers Incident to Divorce
- Alimony and Child Support
- Avoiding Tax on Debt Cancellation and Foreclosure
- Bad Debts
After reading the course material, you will be able to:
- Specify multiple tax implications to consider when going through a divorce, and recognize the requirements and effects of filing as married or unmarried.
- Identify the requirements for filing a joint return and how to avoid being penalized.
- Determine the key elements of filing separate returns including what items to report and identify whether or not married taxpayers should file separate returns.
- Recall the requirements for filing as head of household and the tax advantages and disadvantages of this filing status.
- Recognize the repeal of personal exemptions, their pre-2018 phaseout, availability, and reporting requirements.
- Identify the former regular and special method for determining support and complications from back child support, determine the current “qualified child” standard using residency, relationship, age, and joint return prohibition, and recall the requirements that must be met for parents to treat a child as a qualifying child of a non-custodial parent.
- Identify deductible and nondeductible divorce expenditures specifying which spouse is subject to the tax imposed upon withheld wages, and recognize the effects of making separate estimated tax payments or joint declarations of estimated tax.
- Determine community property and community property states, and identify the effects of conversion and commingling of property, and how to avoid such marital property issues.
- Identify the effect of living together on filing statuses and dependency, determine differences between the married tax rate and other tax rates, recognize the tax consequences of having a living together contract to avoid tax traps, and specify the results of Marvin v. Marvin.
Who Should Attend:
- All Certified Public Accountants (CPAs)
- Enrolled Agents (EAs)
- Tax Return Preparers (TRPs)