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USTaxAdvising
USTaxAdvising, CPA
Category: Tax
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Experience:  US Taxation specialist.
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My individual income is $14,292 from Social Security Disability.

Resolved Question:

My individual income is $14,292 from Social Security Disability. I am about to be divorced and will receive $300,000 cash in the settlement. How much state (CA) and federal tax should I save.

What if we bought a condo and he quit claimed it over to me and I would quit claim on the marital house. Do you avoid taxes then?
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.

USTaxAdvising :

Hello, Thank you for using justanswer. I can assist you with your questions today.

USTaxAdvising :

Assuming the cash settlment is taxable then the federal tax rate on an income of 314,292 would be appoximately

USTaxAdvising :






















































Single
Total Exemptions
Total Income314,292
Adjustments to Income
Adjusted Gross Income (AGI)
Standard Deduction 5,950
Total Itemized Deductions
Total Taxable Income33%
Tax Bracket
Effective Tax Rate
Tax Owed Based on Income
Total Other TaxesPict Pict Pict Pict
Total Credits
Total Payments
Estimated RefundEstimated Amount Owed
USTaxAdvising :

Sorry I never finished before I posted the above - your effective tax rate is 28% while the tax bracket is 33%

USTaxAdvising :

Total federal tax owed would be appoximately $85,027

USTaxAdvising :

See link here for the estimate tax calculator - http://www.efile.com/tax-service/tax-calculator/

USTaxAdvising :

Note that the cash settlment may not be taxable if it is:




  • - Property settlement payments, even if required by the divorce decree or other



written instrument or agreement.• Retirement benefits that the other spouse


is entitled to receive based on division of


community property.


• Any voluntary payments made before they


are required by a divorce decree or


written agreement.


• Child support payments.

USTaxAdvising :

The California tax due would be approximately $26,579 - here is a link to the tax estimator - http://www.tax-brackets.org/californiataxtable

USTaxAdvising :

What if we bought a condo and he quit claimed it over to me and I would quit claim on the marital house. Do you avoid taxes then? - I don't really understand your question. If you receive the home in the divorce then the receipt would be non taxable as it was a property settlement, not alimony. If you then sold the home later then it would most likely not be taxable as I assume you would have lived in the home as your principal residence for at least 2 out of the last five years. If you sell your principal residence which you have lived in for at least 2/5 years before the date of sale you can exclude up to 250,000 of the gain on sale.

USTaxAdvising :

I hope this provides the clarity you were looking for. Please let me know if something is not clear or if you have any further questions.

USTaxAdvising :

Best regards,

USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1111
Experience: US Taxation specialist.
USTaxAdvising and 6 other Tax Specialists are ready to help you

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