If you have a large number of assets when your marriage ends, it’s easy to lose many of them to taxes. However, if you work with a reputable and experienced assets division Lawyer, who knows what needs to be done to protect your assets, this doesn’t have to happen. Also, if you find yourself giving items to your ex that are taxable, you need to ensure you aren’t paying taxes on those items. Keep reading to learn about some of the most common tax mistakes made during a high asset divorce. Knowing what these are can help you avoid them.
The most common assets being transferred during a divorce include titles to real estate, cars, artwork, collectibles, furniture, and an array of other items that may have to be transferred. When this happens, you may face a rather significant tax surprise if the asset hasn’t been titled in your ex-spouse’s name. A common example of this is if the asset was in the name of a trust or a business, which fall outside of the IRS statue 1041.
Remember, all assets aren’t equal when you are getting a divorce. This is due to capital gain taxes. For example, for investments and stocks, the capital gain taxes depend on when they were purchased. It’s also important to know how the capital gains on houses or land may affect your taxes.
Capital losses are extremely challenging to determine when you are going through a divorce; however, it’s important they don’t get overlooked. According to information from the IRS, they can’t be divided during the divorce proceedings. Instead, they are going to remain with the party that ends up with the property after the divorce proceedings are finalized. The difference in the tax bill, though, can be divided during the divorce proceedings.
The tax law is written in a way that makes it possible to carry over losses from the current year to upcoming tax years. It’s also possible to use this to offset taxes paid in prior years, which may result in the government owing you money. If your net operating losses are going to result in a refund, they need to be accounted for when you are dividing your assets.
It’s often challenging to divide assets when going through a divorce. That’s why you need to call the legal team from Lewert Law, LLC by calling (561) 220-2441 for help. These family attorneys in Boca Raton, Florida only focus on family law. They have many years of experience handling high-asset divorces. Contact them today to ensure your rights and your assets are protected and that you don’t make any of the tax-related mistakes that are described above and that may cost you in the long run.
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