As a general rule, the dependency exemption for a child goes to the parent having the child for the longer period of time during the year. The Act, however creates an exception to this rule by allowing that parent to release his or her claim to the dependency exemption to the other parent. Attach a written declaration to their tax return for any year in which the dependent is claimed on his or her income tax return. Either parent may deduct as a medical expense those payments made by the parent on behalf of the child, regardless of whether the parent is entitled to a dependency exemption. This rule prevails regardless of whether the other parent claims a dependency exemption for the child.
Parties can buy, sell, or trade assets between themselves.
This rule applies regardless of the relationship between the transferor's basis to the fair market value of the property at the time of transfer. Is related to the cessation of the marriage. If parties need to defer a property transfer beyond six years, they should include language in their Memorandum of Understanding or Decree to state their intentions beyond the IRS limit of six years. Parties are advised to first obtain the opinion of a tax attorney to possibly help their IRS case. If one party receives the residence, that party gets all the basis in that residence and hence all capital gains implications.