Tax and Gross Income

4. Interest income received by a cash basis taxpayer is generally reported in the tax year it is received.

a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?

1) The gift tax is a wealth transfer tax that applies to transfers during a person's lifetime and transfers at death.

c. both the expenses incurred for office space, equipment, and supplies, and her foregone salary of $42,000 per year

c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above?

How is the child support amount calculated? The Child Support Guidelines are administered by the States and they vary from one state to another. The Guidelines are a little murky if one (or both) of the spouses are independent business owners that have control over their income. In such cases, a financial or tax professional will be able to help to figure out the real potential income of both spouses. Is there a need to go to court? If you are unable to reach an agreement, then going to court is necessary. A judge will hear the case once a court date has been set. In the USA, less than 2% of divorce cases ever proceed to trial. What is a QDRO and do I actually require one? A Qualified Domestic Relations Order (QDRO) is an official document that

Therefore, IRS provides taxpayers with the set of rules and tax court cases which help to identify the possible tax consequences. Through the above case study, $5,000 in legal fees spent by Bill in the divorce process are nondeductible personal expenses. On the other hand, Hillary is able to claim a deduction of $2,000 for legal fees related to collecting alimony taking into account that her adjusted gross income is $100,000 or

Sometimes, the court may order spousal support. These types of awards are monetary payments that people make to their former spouses after their divorces are finalized. The purpose of these awards is to help people support themselves and maintain their standard of living after they have

Alimony, or spousal support, can be a part of a Georgia divorce under certain circumstances. Courts most often award alimony in a divorce involving a long-term marriage, or one that has lasted for ten years or more. This is particularly the case if one spouse has a much higher income than the other or if one spouse stayed home to care for the couple’s children while the other spouse worked. However, if a spouse committed adultery, he or she may forfeit the ability to request spousal support.

Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity account is decreased by a debit [2]BASIC BANK02 - BAT 010 The Income Summary account contains: A. Total revenues and total expenses for the year B. Total assets and total liabilities at year end C. Total revenues, expenses, assets, and liabilities

$2,400 in child support received from Spouse B’s ex-husband, the child support is supposed to be used in the care of the child. ($200 a month for 12 months)

Whenever separate funds are used to pay for community expenses a spouse may be entitled to reimbursement in a divorce action Dupree v. Dupree, 41-0572 (La. App. 2d Cir. 12/20/06), 948 So. 2d 254, 261 . In Dupree, the family enjoyed benefits flowing from the plaintiff’s separate property for many years. The court reasoned that without the plaintiff’s separate funds, the family would not have enjoyed the lifestyle to which they were accustomed. Id. At 258. She provided a comfortable living environment for her family as well as private schooling for her children, thus benefitting the community. Id. At 258. Although the defendant

Before issuing an award of alimony or spousal support, the courts must first determine that one party has a need for such support and that the other party has the ability to pay it. According to Florida’s alimony laws, the court may next “consider the adultery of either spouse…in determining the amount of alimony, if any, to be awarded.”

Since Mr. and Mrs. Green intend on having joint custody of the children, it looks as if all aspects of rearing the children, including expenses as well as decision-making would be shared among the parents. Although it is "shared", that does not signify that it will be equally shared. The court will determine, based on the formula contained in the Kentucky Child Support Guidelines, what each parent pays. Furthermore, since Mrs. Green is without income as a homemaker, it seems as though some sort of child support payment should be paid in regards to the children while they are residing in her home. Also, if Mr. Green takes a job, earning less income due to health problems, this may affect the amount of child support he would be obligated to pay, but it shouldn't keep him from being required to pay some sort of child support. This job change can cause the court to deviate from the guidelines. However, the court may look at Mrs. Green's unemployment as being voluntary. Thus, the court may not use that issue in determining the child support Mr. Green should be obligated to pay. The court will probably not order Mrs. Green to obtain employment, but in looking at the facts, there is no valid reason as to her unemployment, and it may be in the

in computing taxable income are answered, a second set of questions must be faced. These