Tax Issues

When business owners get divorced, their settlement may have profound consequences for the business and other owners. Often, one spouse “sells” or gives up a share of the business to the other spouse. Since most small business owners do not have enough cash to pay a lump sum for that share, they might have to […]

Alimony Tax Gross-Up Approved

August 9, 2010 Alimony

In Balicki v. Balicki, 2010 PA Super. 134 (July 30, 2010), the Superior Court considered the husband’s argument that the alimony order provided more income to his ex-wife than she could spend (as shown by her budgetary expenses). The trial court in its opinion justified the alimony award by noting that the wife would pay […]

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Kids and summer jobs: Some tax reminders

July 12, 2010 Family Law News

My friends at Crawford Ellenbogen LLC  know a lot about taxes. One of their principals, Victor Dozzi CPA, recently sent me a great tip about kids who are earning income from summer jobs, and I asked him if I could share it with you. He agreed, so here it is: Are your children working at […]

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Dividing CRATs and CRUTs in Divorce

January 19, 2010 Divorce

A recently-issued IRS ruling (Rev.Rul.2008-41) addressed the issue of whether a charitable remainder annuity trust (CRAT) or charitable remander unitrust (CRUT) can be divided into two equal trusts upon divorce. A charitable remainder annuity trust is a trust in which the grantor receives income in the form of an annuity payment until his or her […]

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Divorce Legal Fees: Tax Deductible?

January 16, 2010 Divorce

This time each year, divorce lawyers everywhere face the same question from clients: are my legal fees are tax-deductible?

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SRR Answers “Taxing” Year-End Questions

March 3, 2009 Divorce

The forensic accounting firm of Stout Risius Ross Advisors LLC has published an excellent guide to year-end tax questions that separated and divorcing spouses may have: 1.) What is my filing status for 2008? Your filing status is determined as of the last day of the calendar year. You are considered unmarried for the whole […]

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