Divorce was final on 9/21/18. Loss carry forward in 2018 was substantial. Is simply divided 50/50? Or does it depend on who owned the asset that was sold for a loss?
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JDpenelope -
How were the assets that generated this loss divided? I would follow that formula in the absence of an express stipulation in the property settlement paragraph of the divorce decree. If you are unsure ask your clients to arrange for a consultation with their divorce lawyers at their expense. You don't want to assume any responsibility if it is done incorrectly.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Depends if they were jointly owned especially in non community property states. If a MFS return was prepared in the year the loss was created then you would see how it was divided."Dude, you are correct" Rapid RobertComment
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See this link for a discussion of carryovers: https://bnymellonwealth.com/articles...in-divorce.jsp.Comment
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Mo tax law seems to be different from most states. Will research this more, but client is adamant that she will take half, because MO tax law treats this differently. PLUS she says that she paid half of a large balance due for 2016 which was totally because of her ex's income. Also, just fyi, there are MANY different assets that lead to losses in the carry forward amount and if we had to trace each one, it could be very difficult, since some were owned jointly and some weren't. Also, it was an uncontested divorce (much cheaper) and the judge just passed on what the 2 parties had already agreed to in the division of assets. But the agreement was silent on the amount each party could take for the carryforward, probably because the parties must follow the law. Thanks to Burke for the link! and to all who answered.JDpenelopeComment
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