A summary of business tax issues in marital dissolution

1. DIVORCE & TAXES WEBINAR
IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this communication,
including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding
penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein.
Roger Royse
Royse Law Firm, PC
1717 Embarcadero Road
Palo Alto, CA 94303
rroyse@rroyselaw.com
www.rroyselaw.com
www.rogerroyse.com
Skype: roger.royse

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OVERVIEW
1. Transferring Assets
2. Inherent Tax
Liabilities
3. Net Operating Loss
4. Capital Loss
5. Passive Activity
Loss
6. S Corp. Suspended
Loss
7. Attorney’s Fees

3. 3
Alimony/Property Division/Child Support
• Alimony taxable to recipient, deductible to payor
• Child support not taxable or deductible
• Property division not taxable if under 1041
• Dependents

4. 4
Transferring Property
• Transferring Assets
• Transfers incident to
Divorce (IRC § 1041)
• Principal Residence
Exclusion (IRC § 121)
• Allocation of Inherent
Tax Liabilities

5. 5
Business Interests: Loss Carryforwards
• Net Operating Loss
• Capital Loss
• Passive Activity Loss
• S Suspended Loss
• Allocation of S corp
and LLC Income
• Redemptions

6. 6
Attorney’s Fees
• General Divorce
Legal Fees
• Alimony-Related
Legal Fees
• Tax-Related Legal
Fees
• Exceptions

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