Community Propedrty issue

[Kram BergGold]

My client is a CA resident. He married in 2007. He and his spouse want to file MFS. They have no joint accounts. Each of their names is on a vacation home. She pays all expenses for the vacation home and the first home which only her name is on.
Income wise does he have to claim any of her incomes and vice versa. Deductions wise does he have to claim any house taxes or interest or any other deductions?

[OtisMozzetti]

Where is spouse a resident?

My client is a CA resident. He married in 2007. He and his spouse want to file MFS.

Of what state was she, his spouse, a resident?

[OtisMozzetti]

To start the discussion about separate/community income.

My client is a CA resident. He married in 2007. He and his spouse want to file MFS.
...
Income wise does he have to claim any of her incomes and vice versa?

For the period of time they were married during 2007, half of his paychecks are hers and half of her paychecks were his unless some of her paychecks were earned while not a California resident and were not from a California source.

If either of them has separate property, that one of them receives separate income derived from that property. For all we know, the two pieces of real estate you describe might be separate property acquired before they were married, or inherited after they were married, etc.

[OtisMozzetti]

California FTB Publication 1051A Guidelines for...MFS

It is all laid out, in principle, for you in a 2-page publication from the California Franchise Tax Board, at www.ftb.ca.gov. Look under "Forms" download, and skip down to Publication 1051A, which is entitled "Guidelines for Married/RDP Filing Separately Returns".

You may also need Publication 1031, entitled "Guidelines for Determining Residency Status", which can be downloaded at the same website.

OtisMozzetti(not my real name, but the name of my neighbor's Labrador retriever), EA in California

P.S: Another issue is that the tax return might be a Part-Year or Non-Resident Return, using Form 540NR, depending upon the residence of the spouse who may or may not have been a California resident.

[Kram BergGold]

Thanks Otis

I followed your instructions to the page on the Ca website. It was just what I needed.
Thanks