Divorce Tax Considerations

Here are a few things you need to know regarding divorce and taxes

1. Splitting assets between husband and wife without considering the property’s basis
2. Losing the benefit of the child tax credit the, HOPE and Lifetime Learning Credit, and
3. losing the deduction for qualified tuition and related expenses
4. Assuming that the payment of attorney and expert fees is deductible
5. Filing a joint return
6. Disguising child support as alimony
7. Forgetting to specify that alimony ends at death
8. Assuming that the capital gains tax or gain from sale of principal residence is based on
9. the client’s share of the proceeds
10. Letting alimony payments drop off too quickly
11. Fighting over the dependency exemption when the client cannot make use of it
12. Not consulting a tax expert