EP 94: 6 Tax Tips in 2017 that will Save You Thousands (or more!)

Link: https://www.divorceandyourmoney.com/shows/6-tax-tips-that-will-save-you-thousands
Content: Episode 94 of the Divorce and Your Money Show discusses 6 Tax Tips for 2017. While taxes are both complicated and boring, they are very important to pay attention to during the divorce process.  If you do not, it can cost you tens of thousands of dollars moving forward.

Here are the 6 Tax Tips:

1) Get your own CPA (during and after divorce). During a divorce, you will have extra complications. Therefore, you will want your own CPA to review the tax implications of each decision.  During this transition period, pay for quality advice.

2) Properties transferred during a divorce are tax-free, but they can have future implications. If you sell a home or investment, you must be aware of the cost basis (or income taxation).  A good Pro-Tip is to ask for alimony in a lump-sum payment upfront.  This one-time payment is tax-free, and it avoids continual taxation (on what would otherwise be annual alimony payments).

3) If you sell a house while you are still married, you do not have to pay taxes on the first $500,000 of the gain on your house. For example, perhaps you pay $300,000 for a house, then sell it for $800,000. If so, you would owe no taxes. (If you are single, you can only shelter $250,000.)

4) Remember to chase down that tax refund. It should be mentioned in the divorce proceedings, and you should know where it is going.

5) There are many child-related tax benefits, and they are very valuable. Take advantage of these benefits (such as standard deductions and child-tax credits) if you are a guardian. And even if you are one, you can still negotiate alimony and settlements based around these assets.

6)  Keep tax-loss carry forwards if you have them. When investors lose money, you can carry those losses forward to offset capital gains later.  These losses are assets, so they must be understood and negotiated.

Thank you for listening to the Divorce and Your Money Show. Visit us at www.divorceandyourmoney.com  for 1-on-1 coaching and be sure to check out the NEW courses Steps to Take Before Divorce   and How to Get a Divorce without Losing Everything .

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