Making the Best of Bad Situations

Course Description:

This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current perspectives on property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined with an emphasis on planning considerations. The cancellation of indebtedness income inclusion rules are examined in the context of debt forgiveness and property foreclosure. Emphasis is given to the exceptions from income inclusion contained in §108. The tax treatment of property repossession under §1038 is explored with detail given to the calculation of gain and received property basis. Finally, bad debt treatment under §166 is reviewed and critical distinctions made between business and non-business debts.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Identify the requirements of filing a joint return and how to avoid being penalized.
• Clarify the requirements for filing as head of household and list the tax advantages and disadvantages of this filing status.
• Explain the phaseout of exemptions pointing out its impacts on taxpayers.
• Identify when exemptions can be taken for spouses.
• Describe reporting requirements for dependent exemptions.
• Analyze the former regular and special method for determining support showing complications from back child support and multiple support agreements.