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bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 2827
Experience:  IRS Enrolled Agent, 18+ years of experience in tax preparation with associated finance experience.
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I have a client that she received $ 323 k, from divorce

Customer Question

I have a client that she received $ 323 k, from divorce settlement this year of 2016, I want to know if this amount is taxable or not.
Submitted: 1 month ago.
Category: Finance
Expert:  bkb1956 replied 1 month ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Generally, no gain or loss is recognized on the transfer of property (cash) from one spouse to another as a result of divorce.

Basically, if the settlement is a division of the marital "estate," it already belonged to the parties, and they are simply dividing it.

Make sense?

https://ttlc.intuit.com/questions/1932608-i-received-money-as-part-of-a-divorce-settlement-is-this-taxable-how-declare-it

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 1 month ago.
she does not need to pay taxes on that right
Expert:  bkb1956 replied 1 month ago.

Correct. It is NOT taxable income.

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