|
|
|
» From: Houston, TX Dear TaxMama, In my divorce, my wife will pay me half the equity in our home owed to me at the time of the divorce and pay the rest in monthly installments. My question is, does imputed interest apply to this type of payment? Thanks. Jeff Dear Jeff, That's a good question. I don't believe imputed interest would apply. It's not really a loan, she's paying you back your share of the marital estate. Do you have a tax preparer, or someone who advised you during your divorce? My concern isn't so much that someone would want to impute interest on it. What bothers me is - regular, monthly payments often look like alimony. Make SURE that it is spelled out in writing that this is NOT alimony, simply a return of your marital capital. Otherwise, some clever tax pro, on your wife's behalf, might decide to take an alimony deduction on her return. (I'm wicked enough that I might do that if an ex had been particularly unpleasant ...) Your ex-wife may be a doll. But, I'd protect myself. Best Wishes, Eva Rosenberg Click Here for TaxMama's Honor System |
 |
|
|
 |
|