Divorce Transfers and Settlements 2023 - 2 CPE
Mini-Course Description & Study Guide
Participants will learn how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current per-spectives on property transfers and asset divisions are examined with an em-phasis on planning considerations. This mini-course reviews property settle-ments and other transfers incident to divorce. Basis allocation, third party transfers, and purchases between spouses are also examined.
TEXAS COMPLIANCE PENDING:
Texas requires a class be reviewed by enough students to assign earned CPE credits. This course is still new enough that we are obtaining the reviews needed. We recommend Texas CPAs check back soon. This process is usually finished within a few weeks.
Divorce Transfers & Settlements
Mini-Course Description & Study Guide
Participants will learn how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current per-spectives on property transfers and asset divisions are examined with an em-phasis on planning considerations. This mini-course reviews property settle-ments and other transfers incident to divorce. Basis allocation, third party transfers, and purchases between spouses are also examined. Common pitfalls for the unwary such as transfers in trust, installment notes, and purchases be-tween spouses are analyzed. Application of these tax principles is exampled in selected asset divisions of the residence, business interests, insurance, and pen-sion benefits.
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless oth-erwise indicated, no correct or incorrect feedback for any exam question will be provided.
Course Level: Overview. This program is appropriate for professionals at all organizational levels.
Field of Study: Taxes
Prerequisite: General understanding of federal income taxation.
Advanced Preparation: None
Learning Assignment & Objectives
As a result of studying the assigned materials, you should be able to meet the objectives listed below.
At the start of the materials, participants should identify the following topics for study:
* Property rights
* Premarital agreements
* Application of §1031
* Incident to divorce
* Property basis
* Purchases of residence between spouses
* Purchases of business interests between spouses
* Selected asset divisions of residence & business interests
* Real & personal property
* Pension benefits
After reading the materials, participants will be able to:
1. Identify the various forms of marital property and how to proceed with a tax structured property settlement stating the benefits of pre-marital agreements to avoid potential divorce problems.
2. Recognize property settlements under §1041 by:
a. identifying its application to interspousal and third party trans-fers,
b. specifying the factors that determine whether or not a property transfer is incident to divorce under §1041,
c. determining property basis for the transferor and transferee spouse under §1041.
3. Identify remedies for the deferred tax pitfall of §1041 by:
a. determining deferred tax liability of interspousal purchases,
b. recognizing the tax deferral of §1031 exchanges,
c. specifying the key elements of the home sale exclusion and stat-ing their application;
d. recognizing benefit distribution problems and the tax advantages of QDROs.
After studying the materials, answer exam questions 1 to 10.
This course and test have been adapted from materials and information contained in the above text and any supplemental material provided. This course is sold with the understand-ing that the publisher is not engaged in rendering legal, accounting, or other professional ad-vice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice.