Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I was divorced 11/2014. court case. I was ordered to pay all…

Customer Question
I was divorced 11/2014....
I was divorced 11/2014. Nasty court case. I was ordered to pay all mortgages, insurance, taxes.ect. Judge ordered me not to file my 1040/740 income tax for 2014 in Feb and June 2014. I filed an extension until 10/15/2014 and filed on 10/15/2014. I followed IRS 504 guide. Now, the judge ruled 2/1/2015 that I must split the property tax on my mother's house (bill to me from her state) with my ex even though, her name is ***** ***** on the bill, and she has no ownership nor do I. I cannot find anywhere in the IRS504 guide for any guidance. My family court attorney said I must follow the judge's decision because I used martial money. Also, I had a stock purchase plan with my company. Only my name on it. The judge gave my ex half. My attorney tells me it is not consider alimony. Can I deduct it as such. The IRS504 guide said you can deduct cash. My ex cashed out the stock and spent the money?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
3/2/2016
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,790
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

IRS only deals with income and taxes. Divorce/property settlement are not covered in IRS publications.

To be treated as alimony payments or payment must meet certain conditions:

  • You and your spouse or former spouse do not file a joint return with each other
  • You pay in cash (including checks or money orders)
  • The payment is received by (or on behalf of) your spouse or former spouse
  • The divorce or separate maintenance decree or written separation agreement does not say the payment is not alimony
  • If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment
  • You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse, and
  • Your payment is not treated as child support or a property settlement

Usually, division of asset during divorce is not considered alimony. If the judge ruled that your ex is entitled to 1/2 of your stock purchase or 1/2 of real estate held in your name, it is division of asset, not alimony payment.

You cannot treat it as taxable alimony. Sorry if this is not the answer you were hoping for.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 2 years ago

Any questions? Is there anything else I can help you with today?

The issue with the alimony is that it as to be reportable by your ex as income in order for you to deduct it. Assets between spouses during divorce is transferred tax free therefore it cannot be treated as alimony.

Ask Your Own Tax Question
Customer reply replied 2 years ago
Ok, I get the information on my stock. I can live with that. The IRS does deal with divorce. Its in the IRS 504 divorce guide. Since I pay for all the mortgage plus tax, I am legally able to deduct half as alimony, Table 4. It must be co-owned and I pay all with court order. My mother's house is not co-owed. How can my ex deduct half my mother's tax bill on her 1040? I am not the owner, but I pay for my mother's property tax. The bill is addressed to me and I have been taking the deduction.
Tax Professional: emc011075, Tax adviser replied 2 years ago

Well, it seems like we have different opinion on certain issues so let me opt out and let another expert help you.

Ask Your Own Tax Question
Tax Professional: socrateaser, Lawyer replied 2 years ago
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,987
Experience: Retired
Verified

Hello,

Different contributor here. Please permit me to assist.

1. Unlike most of the tax category contributors who answer questions here at justanswer.com, I am an attorney, and I don't do accounting or prepare tax returns (not that there is anything wrong with those who do this functions). Rather, I argue the law -- and the law is routinely very different from what the IRS provides in its publications and various guides. To wit: "It is hornbook law that informal publications all the way up to revenue rulings are simply guides to taxpayers, and a taxpayer relies on them at his peril." Caterpillar Tractor Co. v. United States, 589 F.2d 1040, 1043 (Ct. Cl. 1978).

2. Because of the above admonition from the federal court of claims, when I observe participants here debating over the rules provided in an IRS publication, I feel obliged to step into the fray.

3. The law concerning the deductible character of spousal support (aka alimony or maintenance), is codified in 26 U.S.C. § 71(b)(1), and is defined as follows:

  • (A) such payment is received by (or on behalf of) a spouse under a divorce or separation instrument,
  • (B) the divorce or separation instrument does not designate such payment as a payment which is not includible in gross income under this section and not allowable as a deduction under section 215,
  • (C) in the case of an individual legally separated from his spouse under a decree of divorce or of separate maintenance, the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and
  • (D) there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment (in cash or property) as a substitute for such payments after the death of the payee spouse.

Your facts suggest that the payments you are making are not received by your ex spouse, but they are being used for the purpose of satisfying a debt of your ex-spouse owed for property taxes. You could certainly argue that the payments are being received on your ex's behalf, since if you were not paying the property tax, your ex would be obligated to pay. In fact, Treas. Reg. 1.71-1T(b)A-6 expressly states that a payment to a third party, such as a mortgage or tax payment qualifies as spousal support under the Internal Revenue Code, as long as all of the other requirements of Section 71 are satisfied.

Consequently, the answer to your question here, at least based upon the limited information about your circumstances that I have at my disposal, is "yes," you can deduct the payments as spousal support.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Ask Your Own Tax Question
Tax Professional: socrateaser, Lawyer replied 2 years ago

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer -- otherwise I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Ask Your Own Tax Question
Customer reply replied 2 years ago
The first person that answered, was wrong about the IRS not using IRS504 tables for divorce. Then you picked it up. My question was still not answered. I know I can deduct 1/2 the joint home as alimony. It is right in table 4 under the IRS guide. My question was: I pay my mother's tax's for her because she is elderly. The judge gave my ex wife have my mother's tax deduction. My name and my ex wife's name is ***** ***** the house. I do not think my ex has the right to use 1/2 my mother's tax deduction. The judge only gave her have because I used martial money. I really am not happy with either answer. I am out of $45 and did not get the question answered. I'm just going to let it go and let her have the tax deduction. That way the Judge doesn't get mad. My ex will have to answer to the IRS if they audit her.
Tax Professional: socrateaser, Lawyer replied 2 years ago

I apologize if I misunderstood your question. I will send this session to customer service, and they will refund your money.

Thanks again for using Justanswer!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,987
39,987 Satisfied Customers
Experience: Retired

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Not sure my state income tax payment was sent in. Can
Not sure my state income tax payment was sent in. Can youhelp me? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
Looking for authoritative IRS publication, regs or law: A
Looking for authoritative IRS publication, regs or law: A 501(c)(7) Club has a wholly owned bus. corp. The bus. corp. owns the clubhouse and leases it to its parent Club. The lease is for substantiall… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,047 satisfied customers
In preparation for MN income tax return, we noticed a
In preparation for MN income tax return, we noticed a discrepancy and would like to receive a transcript for the 2016 income tax return for MN. We have a POA on both spouses, thanks, … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
I am getting a divorce,if I have to pay alimony can I deduct
I am getting a divorce,if I have to pay alimony can I deduct that money every year … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is California IHSS provider income deductible if the
Is California IHSS provider income deductible if the recipient is my mother who lives with me and I am her main care provider? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
Our tax preparer filed an extension for the first time for
Our tax preparer filed an extension for the first time for us (seems he is behind); can we go to another preparer to file our taxes once an extension is filed? … read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
199 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
Is there a deduction for using IRA funds to make a divorce
Is there a deduction for using IRA funds to make a divorce settlement payment? … read more
Bill
Bill
Master's Degree
2,278 satisfied customers
If I'm filing an extension on my tax individual tax return
If I'm filing an extension on my tax individual tax return and don't know my tax liability, payments, balance due, or amount I'm paying for 2017 on the "Part II Individual Income Tax" section - what s… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
According to federal income taxes rules, can a non-
According to federal income taxes rules, can a non- custodial parent fund a bank account with pre-tax dollars to pay child support … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I got divorced this year, and I was ordered to pay alimony
I got divorced this year, and I was ordered to pay alimony in addition to paying off our three jointly held credit cards, and her individual card (which I did pay off). I know I can deduct the alimony… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
I prepared a c-corp trucking company income tax return for
I prepared a c-corp trucking company income tax return for 2015 and 2016 They paid their employee drivers per diem for days away All the records are good but the IRS says I should have only deducted 8… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
On the 1040A form how can i deduct state property tax (
on the 1040A form how can i deduct state property tax (Washington State)? … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
358 satisfied customers
Has the IRS made any ruling on the deduction of state
Has the IRS made any ruling on the deduction of state withholding tax and real estate taxes on Schedule A for 2018. Will there be a requirement to deduct withholding in total before moving to real est… read more
abci168
abci168
Principal
27 satisfied customers
I was audited for my federal tax return in 2014 and I
I was audited for my federal tax return in 2014 and I submitted all the requested info and the irs decided there was no extra tax to pay. I just received another audit for the year 2015 for the same i… read more
abci168
abci168
Principal
27 satisfied customers
In Illinois is a QUILDRO the same as alimony? Can I deduct
Can I deduct the amount of the QUILDRO I pay from my income tax and do I need to send my ex a 1099 … read more
abci168
abci168
Principal
27 satisfied customers
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x