A Qualified Domestic Relations Order (QDRO) is a legal document that directs the administrator of a pension plan to give a certain amount of an employee’s pension to his/her non-employee ex-spouse after the divorce is final. Here are the top four mistakes people make when it comes to QDROs. Consider this scenario: husband and wife happily sign the divorce...

Even if the government allows us to exclude over 10 million dollars of our estate for tax purposes, estate planning is still important to a lot of people. Although, one day there may be no taxes due when we die, we still have the legal system to contend with.  Any person who dies who has assets over $100,000, this includes cash, personal property and real...

Many of us find ourselves selling our homes and in these times of huge changes in property values in California, we may need to look at the tax affects of this. For years prior to 1997, taxpayers had to reinvest the proceeds in order to avoid paying taxes on this gain. With the passage of the Taxpayer Relief Act of 1997, Congress passed a law to simplify this...

With passage of the Taxpayer Relief Act of 1997, Congress enacted sweeping tax reduction legislation last August. For those contemplating divorce, it alters dramatically some of the tax problems and benefits. This article discusses the major changes in taxes as it effects the sale of your home No More Tax on the Sale of Your Home Courtesy of the Taxpayer Relief...

Special facts which you should know and upon which you will need to obtain further advice from your accountant or attorney are: If spousal support is paid to one party by Court order or written agreement, such amounts are taxable income to that party and the amount of such payments are deductible for tax purposes from the income of the paying party. It is...

For many years, single parents and single taxpayers who take care of their parents, have been able to utilize the lowest tax rates by filing as Head of Household. Effective January 1, 2005, there are new requirements to determine if you can file as Head of Household. Here are the new rules for a qualifying child for Head of Household purposes: Gross income...

Taxes are, unfortunately, a part of every financial decision. Like it or not, Uncle Sam’s greedy fingers reach into your pocket with every paycheck and each dollar of investment earnings. The booklet includes tax tips for eight major life events, including going to school, beginning a job, becoming a family, business ownership, divorce, and retirement, plus...

During your marriage you will probably have filed a joint tax return.  Upon your divorce or even years later you may regret having signed a joint tax return when the IRS audits your joint returns. When you filed a joint federal tax return jointly the law says that you are both liable for any taxes due along with any interest or penalties. That means the IRS can...