Article Date:
December 2019


Word Count:
1888

 

 

Know These Divorce-Related Tax Issues for Small-Business Owners


When divorce happens to you as a small-business owner, you can face significant tax consequences.

 

Here’s what you need to know to get favorable tax results.

 

Tax-Free Transfer Rule Usually Applies to Asset Splits

 

The general tax rule in a divorce is that you can divide up most assets, including cash, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences.1

 

When an asset falls under the tax-free transfer rule, the ex-spouse who receives the asset takes over its existing tax basis (for tax gain/loss purposes) and its existing holding period (for short- or long-term holding period purposes).

 

Warning. The tax-free transfer rule applies only if your soon-to-be-ex is ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee