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by Nancy Kearson, CPA
I am an "out-spouse" in a divorce situation opting for a deferred sale of the primary residence. My wife and children will live in the house, and I will rent nearby. Since I will be the sole income provider, and thereby either paying mortgage interest and property tax payments directly or indirectly (through support payments), am I entitled to the tax deduction for these items?
With a written agreement, you can also pay directly the home insurance, utility and other third-party bills and deduct such payments as alimony. You should consult a certified family law specialist attorney, however, to ensure such written arrangements are properly worded and filed.
Going through a divorce can be tough enough without the added burden of tax dilemmas. Sit down with your CPA to discuss your situation and how best to handle your finances to reduce your overall taxes.
Nancy A. Kearson is a Los Angeles-based forensic CPA as well as a Certified Valuation Analyst.
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In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.