Participants will learn how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current perspectives on property transfers and asset divisions are examined with an emphasis on planning considerations. This mini-course reviews property settlements and other transfers incident to divorce. Basis allocation, third party transfers and purchases between spouses are also examined. Common pitfalls for the unwary such as transfers in trust, installment notes, and purchases between spouses are analyzed. Application of these tax principles is exampled in selected asset divisions of the residence, business interests, insurance, and pension benefits.
Delivery Method: Online Self Study
Advanced Preparation: None
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Author: Danny Santucci
Field of Study: Taxes
Passing Score: 70%
Publication Date: 02/27/2018
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1. Identify the various forms of marital property and how to proceed with a tax structured property settlement noting the benefits of premarital agreements to avoid potential divorce problems.
2. Recognize property settlements under Section 1041 by:
a. Identifying its application to inter-spousal and third party transfers,
b. Specifying the factors that determine whether or not a property transfer is incident to divorce under Section 1041,
c. Determining property basis for the transferor and transferee spouse under Section 1041.
3. Identify remedies for the deferred tax pitfall of Section 1041 by:
a. Determining the deferred tax liability of inter-spousal purchases,
b. Recognizing the tax deferral of Section 1031 exchanges,
c. Specifying the key elements of the home sale exclusion and stating their application;
d. Recognizing benefit distribution problems and the tax advantages of QDROs.
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