Recent content by willow26

Update again. IRS accepted the return without any questions. California tax authority questioned the capital gains amount for both my ex and myself. We both disputed the charge and it was dropped after community property explanation. Hope this is helpful to everyone. Don't pay taxes which...

Thank you very much for the information. I will take the currency conversion into consideration and just her $250K allowance will be enough to cover the capital gains. I can still file jointly without any problem.

I got married 2 years ago, and my spouse moved to US at that time. She is selling a home in foreign country which is only in her name. We have been filing taxes jointly here. How should I report the capital gains (less than $200K) of the home sale? She has lived there alone 2 out of last 5...

Just want to update everyone that what I mentioned in the original post is exactly what IRS accepted. There has been no questions about how the income was split and our tax returns were accepted as filed.

It is a tax related question because of the tax implications of transferred property instead of cash.

Exactly right TM. I had to educate myself by reading those two documents multiple times before coming up with my conclusions. There is hardly any discussion about my situation on the web and I hope this helps someone else too. Nevertheless, I will wait until i hear back from IRS or until...

Thanks for your opinion. Looks like you've not evaluated the above-mentioned documents completely as I have. Here is a quote from Pub 555 (Page 9) upon which my assumptions were based: Divorce or separation. If spouses divorce or separate, the (equal or unequal) division of community property...

Please evaluate this in Publication 504, page 25: Ending the Marital Community: When the marital community ends as a result of divorce or separation, the community assets (money and property) are divided between the spouses. Each spouse is taxed on half the community income for the part of the...

Thanks for your opinion. Please refer to examples in IRS Publication 555 (Community Property). My assumption was directly based on the two documents I mentioned. We will find out soon enough and I will keep you guys updated.

I went through an amicable divorce with my spouse last year in California which is a community property state. I am the high earner. We didn't split the finances until the dissolution date which was very late in the year. While doing taxes for TY2018, this is what I ended up doing after...

Please look at the last sentences of reply #2 by "Taxing Matters" above. Furthermore, during my research so far, I have not seen it mentioned anywhere as to how child support payment should be made. As far as alimony is concerned, IRS has given a clear guidance that it should only be paid by...

Thanks for all your replies. From above, I can conclude that child support can be paid via stock transfer. Any additional transfer of stock considered gift and can go unreported if the amount is under $15,000

My question is, if I gift stock to my wife instead of cash payment as additional financial help above and beyond alimony, will it cause red flags when I file the gift return?

Thanks for your reply. We're not going through any child support agency because we had a very amicable split. There was nothing mentioned in the decree except the amount to be paid. The custodial parent is in complete agreement about the arrangement. On another note, can I gift my ex with...

Hello, Can I give stock to the custodial parent instead of cash payment for child support? Since the custodial parent is in low tax-bracket, the tax liability would be 0% up to a certain amount. I will appreciate your insight regarding this.