Source: https://jncpe.com/courses/divorce-tax-issues/
Timestamp: 2019-04-25 07:00:36+00:00

Document:
This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Divorce tax issues such as property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined with an emphasis on planning considerations. Property settlements, basis allocation, third party transfers, and purchases between spouses are explored and analyzed. Special attention is given to the division of business interests, retirement plans (including QDROs), insurance policies, and the family residence.
Format: Online pdf (303 pages). Printed book available.
2. Identify the requirements for filing a joint return and how to avoid being penalized.
5. Recognize the repeal of personal exemptions, their pre-2018 phaseout, availability, and reporting requirements.
6. Identify the requirements for pre-2005 dependency particularly relationship, married person, citizen or resident and income and, specify the former regular and special method for determining support recognizing complications from back child support.
8. Identify deductible and nondeductible divorce expenditures specifying which spouse is subject to tax imposed upon withheld wages, and recognize the effects of making separate estimated tax payments or joint declarations of estimated tax.
1. Identify types of marital property and their likely division in marital property settlements and specify five legal principles used in dividing assets and providing support on divorce or separation.
3. Specify the position of U.S. v. Davis on interspousal transfers and the changes made by §1041, and identify the requirements of §1041 and the scope of its application.
4. Identify factors that determine whether a property transfer is incident to divorce and how to meet these factors or avoid §1041 altogeth-er when desired.
7. Specify the application of §1041 to property transfers where the transferee assumes liabilities encumbering the property, and choose the holding period for an asset transferred between spouses or former spouses incident to divorce.
8. Recall the dangers of purchasing a former spouse’s interest in property particularly a marital residence and its tendency to create deferred tax liability.
10. Specify common disposition alternatives available on divorce, recall the home sale exclusion requirements, and identify the tax treatment and use of installment obligations under §453 in divorce.
12. Identify whether gain or loss on a sale of real or personal property is capital or ordinary, recognize the tax treatment of such gain or loss and recall the role and tax treatment of life insurance in property settlements.
13. Specify popular methods of dividing retirement benefits in a di-vorce or separation action identifying the requirements and tax conse-quences of a “qualified domestic relations order (QDRO).
e. Selecting which debts incurred during a divorce are dischargeable in bankruptcy.
1. Determine “alimony” and “separate maintenance payments” under §71 and their pre- & post-2019 deduction or income treatment under §215.
2. Specify types of §71 “divorce or separation instruments” and deter-mine how having an invalid decree, an amended instrument, or a pre-marital agreement impacts such an instrument.
4. Determine the tax treatment of housing costs for the family resi-dence and the impact of ownership by contrasting when the nonoccu-pying spouse owns the home with when the occupying spouse owns the home.
5. Identify what rent or resident cost payments can be alimony when a family residence is jointly owned and occupied by a spouse or a tax-payer is required to make rent payments for a spouse.
6. Specify the tax treatment of life insurance premium payments, volun-tary payments and payments to a remarried spouse recognizing ad-vantages and disadvantages to each spouse.
8. Specify the differences between child support and alimony identify-ing their tax treatment to avoid reporting errors.
10. Identify the pre-2019 deduction of alimony paid and the reporting of alimony received on the proper forms specifying required infor-mation.
11. Specify the pre-2019 alimony recapture rule for various marital agreements and its impact on the tax treatment of past payments.
12. Recognize the use of alimony trusts to realize tax advantage and security, determine the use of annuity contracts, and specify the proper tax treatment of alimony paid by an estate to a former spouse of a de-cedent.
13. Identify the tax treatment of child support and circumstances where a payment will be fixed as child support, and specify events that deter-mine whether a contingency is clearly child-related and how to rebut this presumption of child support.
b. Determining what constitutes “qualified medical child support or-ders” recognizing differences with other similar orders and identify-ing the procedures, requirements, and jurisdiction of QMCSOs.
b. Recalling the effects the 2001 EGTRRA and HR2 had on the standard deductions and bracket breakpoint for married filing jointly.
2. Determine the tax treatment of spousal travel including additional cost limitations and identify the benefits of husband and wife partnerships particularly with regards to Social Security qualification.
3. Recognize the application of federal estate tax on couples and where estate planning may be necessary as a result of marital status including the unique application of dower and curtsey.
4. Specify the treatment of co-tenancies with or without a right of survivorship identifying qualified joint interests, recognize the impact on the value of a general power of appointment, determine what insurance proceeds are included in the gross estate because of incidents of ownership and cite the community property issue involved with ownership of life insurance.
6. Identify marital deduction variables including deduction limitations and specify the federal income tax treatment and gift tax treatment of non-citizen spouses.
7. Recognize the effect common transactions and community property have on §1014 property basis and the benefits of a bypass trust specifying its effect on the marital deduction.
8. Determine the purposes of the federal gift tax noting its computational methods and applicable exclusions, specify the advantages of splitting gifts and the gift tax marital deduction recognizing dangers as to “excess” gifts and terminable trusts and identify Social Security eligibility for family members of a system participant.
After studying the materials in Chapter 4, answer the exam questions 100 to 120.

References: v. 
 §1041
 §1041
 §1041
 §1041
 §453
 §71
 §215
 §71
 §1014