If you’re getting a divorce, or are in the process of getting one, my new article makes must reading.
Why? Because the Tax Cuts and Jobs Act of 2017 (TCJA) significantly changed the way you should handle divorce planning now.
Failing to understand how to comply with Uncle Sam’s rules can cost you a lot of money. That’s why it’s so important for you to read my new article titled Tax Tips: Divorce: Beat Alimony, Redeem Spouse’s Stock in Your Closely Held Corp.
Three ways our fact-filled article can help you:
- We’ll alert you to two big changes in the law. First, the TCJA permanently eliminated federal income-tax deductions for alimony payments (required for divorce agreements executed after 2018). Second, recipients of non-deductible alimony payments like these don’t have to include the alimony in gross income. We’ll explain this in detail when you read the full article.
- We’ll tell you about a money-saving strategy you need to know now. If your spouse holds stock in your closely-held corporation, consider redeeming their stock. You’ll hopefully be able to use this buyout money to eliminate the need for some or all of the now non-deductible alimony payments… payments that might otherwise be necessary to reach a divorce agreement. We’ll explain this totally legal strategy when you read the full article.
- We’ll explain why your spouse is normally not taxed. When a stock redemption fulfills your primary and unconditional divorce-related obligation to your spouse, your spouse becomes the “transferor spouse.” Tax law generally stipulates that property transfers between spouses or ex-spouses are tax-free when they’re made pursuant to a divorce or separation agreement. Sound complicated? It is, but we’ll make everything crystal clear when you read the full article.