Discussion:Filing Separate Return
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 04:08, 3 November 2007 Solomon (Talk | contribs) (Sk - You are rig) ← Previous diff |
Revision as of 18:23, 3 November 2007 Skhyatt (Talk | contribs) (Talked to the cl) Next diff → |
||
| Line 27: | Line 27: | ||
| {{ForumReplyPost|UserID=Solomon|Date=3 November 2007|Text=Sk - You are right - they don't apply. I made a false assumption from the original post they did not live together the entire year. [[image:sad.jpg]]}} | {{ForumReplyPost|UserID=Solomon|Date=3 November 2007|Text=Sk - You are right - they don't apply. I made a false assumption from the original post they did not live together the entire year. [[image:sad.jpg]]}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Skhyatt|Date=3 November 2007|Text=Talked to the client further. Basically said that the husband just doesn't file. Didn't say that he works or doesn't work. My gut tells me that he is doing something, but doesn't want to file and she is/has been filing this way as a way of "protecting" herself? Pub. 555 page 6 seems to have a couple of exceptions that I might be able to use. She did indicate that they keep everything separate, checking accts, etc. Read this from RIA, " A husband and wife may by agreement provide that income or property is to be treated as community or separate, and this agreement will be recognized and applied for tax purposes. An agreement between husband and wife that later earnings of each are to be the separate property of the spouse earning the income will make those earnings taxable to the spouse who earns them." Don't know if this clears anything up.}} | ||
Revision as of 18:23, 3 November 2007
Discussion Forum Index --> Tax Questions --> Filing Separate Return
| 3 November 2007 | |
| I have a client who wants to file a MFS return. Resides in California. I do not know if her Husband works or not. There is a home that she says he gave to her and that it is in her name alone. That being the case, I am assuming that all deductions related to the house are hers to claim on Sch A? As I said, I don't know if her husband works, doesn't work, files separate or what. As I read the rules on this, both Fed and Calif, her W-2 income is community property. If that is the case, she should only have to report 50% of those earnings and the husband should have to report the other half. The last two years tax returns were prepared by another firm and they prepared them reporting everything on her return MFS. Another thing that puzzles me is I talked to a CPA friend today and he says that the W-2 earnings don't necessarily have to be split. He was in a hurry, so I didn't really have a chance to ask further questions. Am I missing/forgetting something here? | |
| 3 November 2007 | |
| Sec. 66(a) which references (when living apart all year) Sec. 879(a). Reg. 1.66-2. | |
TheTinCook (talk|edits) said: | 3 November 2007 |
| If the funds to pay for the house come out of community income, then they have to split it.
Check out FTB Pub 1051A. I'm pretty sure that wages earned in CA are community property barring a pre/post nuptial agrement or physical split with no intention of reconciling. Lots of "if"s and "but"s in here, as well as missing info about the taxpayer and spouse. Hopefully KatieJ or Riley2 will pop up here. | |
| 3 November 2007 | |
| Couple lives together. My understanding is that if one of the spouses "gifts" property to the other, that it is considered separate property, thus if that is correct, the house would be separate property of the wife. | |
| 3 November 2007 | |
| Solomon, the wife is married and they do live together, so I'm not sure your cites apply? This one just seems odd. So the wife's W-2 earnings have to be split as I read it, regardless if we know if the husband is filing, has earnings or not? Seems like I would need to ask some questions about the husband even though I'm not doing his return? | |
| 3 November 2007 | |
| Only thing I can find so far that might support her not splitting her income is Pub 555, "Community Property Laws Disregarded". | |
| 3 November 2007 | |
| You might want to ask the client ... what is the reasoning behide filing MFS. | |
| 3 November 2007 | |
| I agree, but wondering how far I can go in asking questions about the husband since I'm not preparing his return? | |
| 3 November 2007 | |
Sk - You are right - they don't apply. I made a false assumption from the original post they did not live together the entire year. 
| |
| 3 November 2007 | |
| Talked to the client further. Basically said that the husband just doesn't file. Didn't say that he works or doesn't work. My gut tells me that he is doing something, but doesn't want to file and she is/has been filing this way as a way of "protecting" herself? Pub. 555 page 6 seems to have a couple of exceptions that I might be able to use. She did indicate that they keep everything separate, checking accts, etc. Read this from RIA, " A husband and wife may by agreement provide that income or property is to be treated as community or separate, and this agreement will be recognized and applied for tax purposes. An agreement between husband and wife that later earnings of each are to be the separate property of the spouse earning the income will make those earnings taxable to the spouse who earns them." Don't know if this clears anything up. | |
