If a divorce is in your near-future plans, consider the new tax treatment for those agreements finalized after Dec. 31, 2018.
All agreements finalized in 2019 will no longer be taxable or deductible. This means the person receiving the alimony won't owe taxes on the income and the person paying the alimony can't deduct the expense.
This change does not affect agreements with alimony considerations in place before Jan. 1, 2019, but current agreements revised in 2019 may be affected.
As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
This DiSabatino CPA Quick Tip provides thought invoking information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. All rights reserved.