KEBSCHU...[at]aol.com wrote:

- quote -

Guess again.

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Bill Brown <brow...[at]longwood.edu> wrote:
- quote -

Actually, some alimony that was deducted in a prior year may
have to be recaptured! I guess that would make the
recaptured alimony non- deductible.

Here is what IRS publication states,

Recapture of Alimony
If your alimony payments decrease or terminate during the
first 3 calendar years, you may be subject to the recapture
rule. If you are subject to this rule, you have to include
in income in the third year part of the alimony payments you
previously deducted. Your spouse can deduct in the third
year part of the alimony payments he or she previously
included in income.

Cheers,

WDK

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Jason <Jason1...[at]nospam.com> wrote:

- quote -

Them, at least mostly.

Based on the facts you presented both you and and your wife
qualify for head of household filing status.

It is less clear whether your house payments should be
characterized as alimony. However, if the payments are
alimony then they are deductible by you and reportable by
your wife as income. As far as I know, there is no such
thing as "non-deductible alimony."

Regards,
Bill

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"Jason" <Jason1752[at]nospam.com> wrote:

- quote -

I'll defer to someone who can examine all the paperwork to
determine the treatment of your ongoing payments.

Were I you I'd pick someone who knows that you can both file
as HofH. I'm assuming here that you both meet the
requirements for a marital status of either single or
"considered unmarried" for tax purposes. See IRS
Publication 501.

--
Phil Marti
Clarksburg, MD

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I was a widower with twin sons age 2 when I remarried in
2003. My second wife was divorced with a son age 4. In May
of 2007, I was promoted and transferred from Indianapolis to
Atlanta. She refused to relocate and we legally separated.
The property settlement has me paying $500 per month against
the home equity loan on an addition made to her house to
accommodate me and my sons and it gives me a 30% lien on the
house less the balance of the addition. I pay directly to
the bank.

I have my sons. She has her son. We had no children
together. I say we can both file as unmarried heads of
household. I also say I can deduct the interest on the home
equity loan payments. The first two tax pros I interviewed
say we'll both get audited if we do that and that the loan
payments should be classified as non-dedcutible alimony.

Am I out to lunch or are they?

Jason

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