Tax Implications of Special Circumstances

Free CFP Exam lesson in Tax Planning. 17 min read, ~2,622 words.

Post-2018 alimony is not deductible by the payor and not includable by the recipient; the agreement execution date controls, and pre-2019 agreements keep the old rules unless modified to opt in. Section 1041 treats divorce property transfers as tax-free with carryover basis, so negotiate after-tax value, not face value. QDRO...