A divorce can be a traumatic event. What can make things even worse is the fat tax bill you may have to pay Uncle Sam. That’s right. Your business, children, property, and other assets can trigger a huge tax bill that can make a bad situation even worse.
Which is why I urge you to read my latest article titled Tax Tips: Tax Tips for Divorce (Part 1).
Three ways our fact-filled article can help you:
- We’ll explain the “Tax-free Transfer Rule.” Good news! IRS Code Section 1041 includes a general rule that allows you and your spouse to divide and transfer most assets, including cash, with no taxes due! Want to find out more? Read the full article.
- You’ll learn how avoid traps when transferring depreciated business assets. The law treats the transfer of property in a divorce as a gift. The gift does not trigger depreciation recapture for the transferor spouse. However, there are a number of traps you have to watch out for. You’ll learn what they are when you read the full article.
- We’ll tell you whether it’s better to choose cash or property. This can be tricky. The cash is easy to figure. What you see is what you get. When it comes to property, appreciated or not, you need to look at the net after-tax cash at both the time of receipt and at the time of sale. Get the whole story when you read the full article.