Divorce settlement tax questions on property and losses
The division of property in a divorce is generally a non taxable event. A taxable gain may arise if a spouse borrows money or injects outside funds to complete a purchase, but a loss in a divorce is normally disallowed for tax purposes. Probate timing varies by state and is not fixed. probate may only be required to transfer property if debts or taxes exist or for a simpler transfer when assets are limited.
Personal tax credits and child care deductions explained
IRS asks and answers cover the 1975 personal exemption credit plus child care deductions. The credit allows $30 per exemption and can reduce tax liability. child care expenses are itemized only if both spouses are employed and file jointly, with caps based on adjusted gross income.
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