The New Tax Laws....And Changes for Divorcing Couples....

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

  As Southeastern Wisconsin Real Estate agents with a niche in divorce, we are extremely guarded advice outside the realm of real estate....we do not and we believe should not....advise clients about legal or Divorce familyaccounting/tax matters...that is not our expertise and if we are asked...we always, always, always suggest that the "bride and/or groom" as we call them....go to the highest and best source...a lawyer or CPA who can advise them as to how  a change in the law...a decision of the judge ...can mean a change for their own situation.  We are not the highest and best source for information in these areas...no real estate agent is unless they are also degreed in accounting and the law.

  tax law changes   Here is some "Law for thought"  that deserves consideration as it concerns the tax law and what may matter to individuals going thru a divorce or who anticipate being in that situation.

  The new tax law has several changes that may effect individuals:

    There is no  tax exemption for children, however the tax credit for children under 17 is doubled to $2000/child.

        Many MORE people are now eligible for the Child tax credit with

   the phase out limit now being $200,000 annually.

       Any alimony mandated for decrees signed in 2018 fall under what 

    are now the "old" alimony rules...alimony is deductible by the payor 

    and taxable income to the payee. 

    

     Beginning in 2019, alimony is neither deductible or reportable. It

     will then be likened to child support...not visible on a tax return.

     

         The government WINS !  This new law will increase the taxes

        paid by divorced couples.  Typically, the former spouse with

        the higher income pays the alimony. How this changes the

        financial picture for each former couple is a question best 

        raised with a CPA.

 

     Over a decade, this is expected to increase government revenue by

8.3 Billion dollars.

 

       We provide this information to inform...and urge divorcing couplesDivorce

 to have their individual situtations reviewed by an accountant...and not

make dangerous assumptions that may make a difference in their financial picture.

      This has been an informative post brought to you by the only certified Real Estate Divorce Specialists in Wisconsin ...and Mentors of the DREAM Course in Real Estate for agents who wish to pursue this niche, Sally K. & David L. Hanson, Real Estate Brokers with Keller Willliams Realty, honored to be of service in southeastern Wisconsin.

 

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
4,476,571
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the information, Sally and David.  I hope I never personally need to know this, but good to know professionally.

May 08, 2018 07:37 AM #1
Rainmaker
2,583,059
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning, Sally and David... what this clearly says, is be sure to check out all the new rules and their impact with a trust accountant if you're divorcing or divorced.

May 08, 2018 07:44 AM #2
Rainmaker
2,885,676
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

There is much "assumption deduction" that comes with this change in lifestyle that can be financially dangerous Nina Hollander 

May 08, 2018 07:50 AM #3
Rainmaker
2,583,059
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

HI Sally... very easy to go down the wrong path with poor assumption in these situations.. I've seen it happen (even without changes in tax laws).

May 08, 2018 08:49 AM #4
Rainmaker
4,805,360
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much for sharing some of your very successful business practices.

May 08, 2018 08:52 AM #5
Rainmaker
1,424,966
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

I'm sure the changes in the tax laws will throw many of us for a loop, simply because we've gotten used to the old laws. 

May 08, 2018 12:27 PM #6
Rainmaker
2,885,676
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

AND the benefits Marte Cliff finding that the max for medical dental deduction is $25,000 is a real piece of non-reality 

May 08, 2018 12:35 PM #7
Ambassador
3,457,136
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- an excellent example of when to hire a professional and in this case that would be a CPA or attorney who knows this area. 

May 08, 2018 02:00 PM #8
Rainmaker
2,885,676
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

When we get questions in the areas in which we don't practice Kathy Streib that is what we recommend and we appreciate when CPA's and Attorney's don't practice real estate :) !

May 08, 2018 02:11 PM #9
Ambassador
3,554,832
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David it is the same for me.  I don't play Lawyer, Realtor, Accountant, Home Inspector, Appraiser, etc.  I have enough to get me in trouble with doing mortgages!!!

May 08, 2018 04:46 PM #10
Rainmaker
3,561,325
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Sally K. & David L. Hanson,

I'm just like George Souto .. I don't play Lawyer, Realtor, Accountant, Home Inspector, Appraiser, etc. 

May 08, 2018 05:31 PM #11
Ambassador
3,865,926
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

The new tax laws will affect many of us. I need to consult our CPA for best advice to be on the safe side. No divorce is in the future.

May 08, 2018 06:02 PM #12
Rainmaker
2,560,138
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

After 50 years if we were going to divorce it would have happened a long time ago.  Tax implications is not something in my wheelhouse of knowledge, therefore I stay away from it

May 09, 2018 01:40 AM #13
Rainmaker
2,970,146
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hello Sally and David- knowing the right people to contact is very important in our business.  Crucial- in fact.

May 09, 2018 07:31 AM #14
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
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