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Full-Text Articles in Taxation-Federal
Taxing Compensatory Stock Rights Transferred In Divorce, Gregg Polsky, Kathleen Delaney Thomas
Taxing Compensatory Stock Rights Transferred In Divorce, Gregg Polsky, Kathleen Delaney Thomas
Scholarly Works
Stock-based compensation has become increasingly prevalent in recent years. As a result, many high net worth divorces now result in the transfer of compensatory stock rights from the employee spouse to the nonemployee spouse as part of the marital settlement. Despite this growing trend, the tax consequences of these transfers have not yet been explored fully. This Article endeavors to fill this void and explain both the planning opportunities and potential pitfalls in transferring compensatory stock rights in divorce. These transfers can shift ordinary income from a high-bracket spouse to a lower-bracket spouse, creating a tax surplus that enlarges the …
Alimony Treatment For A Single Payment, Douglas A. Kahn
Alimony Treatment For A Single Payment, Douglas A. Kahn
Articles
Before 1942 alimony paid to a former spouse was not included in the spouse’s gross income. In 1942 Congress adopted the antecedent to section 71. Although an alimony recipient must recognize gross income, section 215 provides the payer with a nonitemized deduction for the payment. Therefore, the alimony tax provisions provide a congressionally approved income-splitting arrangement which can benefit the parties by shifting income from a high-bracket taxpayer to one in a lower tax bracket. The parties can divide the resulting savings between them by altering the amount paid to the former spouse.
Simplifying And Rationalizing The Federal Income Tax Law Applicable To Transfers In Divorce, Deborah A. Geier
Simplifying And Rationalizing The Federal Income Tax Law Applicable To Transfers In Divorce, Deborah A. Geier
Law Faculty Articles and Essays
This 2002 article explores the tax consequences of transfers in divorce and suggests how the tax consequences can be both simplified and rationalized. This article was written as an "Academic Adviser" to the Joint Committee on Taxation in connection with a study mandated by Congress on the overall state of the Federal tax system (June 2000 through April 2001) and was first published at JOINT COMMITTEE ON TAXATION, STUDY OF THE OVERALL STATE OF THE FEDERAL TAX SYSTEM AND RECOMMENDATIONS FOR SIMPLIFICATION JCS-3-01, VOLUME III (ACADEMIC PAPERS), April, 2001, at 19.
Innocent Spouses, Reasonable Women And Divorce: The Gap Between Reality And The Internal Revenue Code, Stephen A. Zorn
Innocent Spouses, Reasonable Women And Divorce: The Gap Between Reality And The Internal Revenue Code, Stephen A. Zorn
Michigan Journal of Gender & Law
This Article asks whether the "reasonable woman" should become the standard for women seeking relief from tax liabilities under the innocent spouse provision of the I.R.C. and whether an even more specific standard should be adopted for women who are also going through divorce or are in similar situations.
I.R.C. Section 71: Breaking Up Is Hard To Do, John A. Lynch Jr.
I.R.C. Section 71: Breaking Up Is Hard To Do, John A. Lynch Jr.
Duquesne Law Review
The author believes that applying the provisions of the Internal Revenue Code governing the tax treatment of payments made incident to separation and divorce has become complicated and unpredictable. In this article, Professor Lynch examines how I.R.C. sections 71 and 215 have developed, given congressional intent, with respect to the definition of an obligation of support, the differentiation between a support obligation and a property interest, and the periodic payment requirement. He concludes with suggestions aimed at simplifying the law with respect to these payments.
The Haitian Vacation: The Applicability Of Sham Doctrine To Year-End Divorces, Michigan Law Review
The Haitian Vacation: The Applicability Of Sham Doctrine To Year-End Divorces, Michigan Law Review
Michigan Law Review
This Note examines the propriety of applying the sham doctrine to tax-motivated divorces. Section I outlines the evolution of the sham doctrine from its exposition in Gregory v. Helvering through its expression in two different tests for commercial transactions. Section II then studies the relationship between state divorce law and the marital status provisions of the Internal Revenue Code to demonstrate the clear congressional preference for incorporating state law by reference rather than creating an independent federal law of marriage. It also examines the history of the 1969 Tax Reform Act in a vain effort to discern a congressional desire …
Wright V. Commissioner, 62 T.C. 377 (1974), Aff'd, 543 F.2d 593 (7th Cir. 1976), Ruth L. Gokel
Wright V. Commissioner, 62 T.C. 377 (1974), Aff'd, 543 F.2d 593 (7th Cir. 1976), Ruth L. Gokel
Florida State University Law Review
Income Tax- PROPERTY SETTLEMENT IN DIVORCE- AN UNSETTLED AREA OF SETTLED LAW.
Taxation-Income Tax-Deductions For Alimony Payments Made Under Voluntary Agreement Of Separation, William R. Hewitt S. Ed.
Taxation-Income Tax-Deductions For Alimony Payments Made Under Voluntary Agreement Of Separation, William R. Hewitt S. Ed.
Michigan Law Review
Taxpayer and his wife voluntarily entered into a written agreement of separation. Pursuant to the agreement, taxpayer made periodic payments to his wife in discharge of his legal obligation of support. In his income tax return for 1943, taxpayer took the amount of tlie payments made for that year as a deduction from gross income under the authority of section 23(u) of the Internal Revenue Code. The commissioner disallowed the deduction and determined a tax deficiency. Upon petition to the Tax Court for a redetermination of the deficiency, the commissioner was upheld. On appeal, held, affirmed. Only alimony payments …