How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask MequonCPA Your Own Question
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
Type Your Tax Question Here...
MequonCPA is online now
A new question is answered every 9 seconds

Have a business that closed it s doors 4/30/09. Now working

Resolved Question:

Have a business that closed it s doors 4/30/09. Now working as a wage earner at approximately 30% less income with somebody else. I owe IRS $15,000.00 for 2007 and 2008. (95% of this amount owed is self employment tax) I owe former wife $15000.00 in unpaid alimony.
I want to consider giving ex wife free and clear business assets for the unpaid alimony which will translate as payment to her which is deductable. I am estimating my 2009 income as a wage earner at $22,000.00 (this is taxed with a W-2) for 2009. The time the business was open shows little to no income. My original plan was to sell assets and pay IRS then deal with ex wife later. Would this idea be better.
Submitted: 8 years ago.
Category: Tax
Expert:  MequonCPA replied 8 years ago.



First, in order to be deductible, alimony must be paid by cash or check. (see link below)


The disposal of the assets must be reported at their fair market value any gain would be taxable to you if the adjusted basis is less than the value on the date of transfer.

MequonCPA and other Tax Specialists are ready to help you