The wife would get the whole $60,000 to spend

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By Beth Pinsker

NEW YORK, Nov 9(Reuters) As soon as the canada goose uk shop House of Representatives proposed tax reform bill canada goose had hit the news, divorce lawyer Malcolm Taub phone started to buzz.

Canada Goose Parka The tax deduction for alimony was on the chopping block, eliminating the canada goose coats break for the spouse who pays alimony, and the tax hit for the one who receives it. Canada Goose Parka

canada goose Because it is impossible to know if cheap canada goose uk the provision will make it all the way through the process, or when it will be implemented, Taub said he was going to try to rush through his pending cases before the end of the year to be safe. canada goose

Canada Goose sale deduction is a major, canada goose factory sale major factor in negotiating a settlement, and in terms of what a judge will give. This will dramatically change the landscape, said Taub. Canada Goose sale

canada goose clearance While alimony is getting statistically rarer, Taub said it still figures into most of the divorces he works on in his New York based practice. Many of his cases involve long term marriages canada goose clearance and high earning couples uk canada goose where canada goose black friday sale one spouse typically the wife stayed at home to raise children. canada goose clearance

canadian goose jacket Some uk canada goose outlet 12 million tax returns claimed a deduction Canada Goose sale for paying alimony in 2015, according canada goose uk outlet to IRS statistics. canadian goose jacket

One problem the House proposal seeks to solve is Canada Goose Outlet that the number of alimony recipients who claim it as income is far lower 10 million. The dollar amounts reported do not match either.

canada goose clearance sale But experts said it was not clear that the House tax reform proposal would generate more revenue. It could, instead, make Canada Goose Jackets alimony more rare, and lower the amounts Canada Goose Parka paid. canada goose clearance sale

cheap Canada Goose will be canada goose coats on sale less likely to agree to pay alimony because they will not get the tax break that they had previously received and judges will take the tax consequences into consideration as well, and I believe will order less alimony, said Mary Kay Canada Goose Online Kisthardt, a professor of matrimonial law at the University of Missouri Kansas City School of Law. cheap Canada Goose

canada goose deals MATH DIVISIONS In one of Chris Chen pending cases as a Certified Divorce Financial Analyst in Massachusetts, the husband is negotiating to pay $60,000 a year Canada Goose online to his ex wife. He would currently be able to deduct canada goose uk black friday that amount from his taxable income, making his true cost only $40,000. canada goose deals

Canada Goose Outlet The spouse would pay tax on that $60,000 as income, but in a lower income bracket, meaning she would owe the IRS $15,000 and keep $45,000. Canada Goose Outlet

Canada Goose online If the proposed tax reform goes through, the buy canada goose jacket husband would not be able to deduct the alimony, meaning cheap Canada Goose it would cost him an extra $20,000. The wife would get the whole $60,000 to spend. Canada Goose online

But that is not how it would necessarily play out in real life. The paying spouse would be reluctant to pay out as much, while the receiving spouse would be negotiating to hold ground, making tense negotiations even worse.

canada goose store isn a person out there who has to pay alimony who says they are rich enough to afford an extra $20,000, said Chen. canada goose store

Canada Goose Jackets Taub just settled a similar case, where the husband was paying $12,000 a month, but it was Canada Goose Coats On Sale costing him $6,000 net of taxes. The wife was receiving $8,500 after taxes. Canada Goose Jackets

canada goose black friday sale If he were negotiating the deal after tax reform, Taub said, tell the husband not to canada goose clearance sale pay more than $6,000, even though that meant the wife would be receiving $2,500 less per month. canada goose black friday sale

buy canada goose jacket cheap Tax accountant Morris Armstrong, based in Connecticut, said it would be more efficient for the IRS to simply enforce the existing tax statutes. buy canada goose jacket cheap

canada goose coats on sale the IRS was funded better and allowed buy canada goose jacket cheap to do their jobs, we may not need tax reform, he said. canada goose coats on sale

canada goose coats As it stands, when a divorced couple files tax returns that do not match up, they may each get canadian goose jacket a letter, said John Dundon, an enrolled agent canada goose store with a tax practice in Colorado canada goose on sale canada goose coats.

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