This mini-course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital and financial setbacks. Property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined. The cancellation of indebtedness income inclusion rules are discussed 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 and bad debt treatment under Section 166 is reviewed.
Learning Objectives
After completing this course, you will be able to:
Recognize tax considerations and tax guidance for marital breakdowns and, identify marital status specifying the effect marital status has on filing status and federal income tax obligations.
Identify state marital property provisions, cite the elements of 1041 identifying at least two tax traps for the unaware, and specify variables that determine whether a payment is alimony.
Determine the exceptions to the general income inclusion rule noting their tax impact, and recognize the various issues related to calculating gain or loss resulting from foreclosure or repossession including the differences between personal and real property repossession, amount realized on sale or other distribution of property in a foreclosure, and basis calculation on repossession of property.
Identify nonbusiness and business bad debts under Section 166 determining their differences in Code requirements and amount
Major Topics
Filing Status
Advantages/Disadvantages of a Separate Return
Head of Household
Children of Divorced Parents
Transfers Incident to Divorce
Alimony & Child Support
Debt Cancellation & Foreclosure
Basis Reduction
Both Installment/ Non-Installment Method Sales
