November 2009 Newsletter
Table of Contents
1 Expenses for a Jointly-Owned Home
2. Free Teleclass
3. New Product - Divorce Survival Kit™
4. Divorce Funny
5. Thought for the Day
1. Expenses for a Jointly-Owned Home
We have had so many questions about the deductibility of expenses
for a jointly-owned home. As you will recall, a divorced couple
can each take a $250,000 exclusion when the house is sold several
years later if they continue to own the home jointly.
Let's say that John and Mary get divorced and Mary stays in the
home. If she pays all of the mortgage payments (principal and interest)
and the home is jointly owned, then she can deduct and John must
include as alimony half of the total payments. (She is making a
payment on his behalf on something that he owns 50%.) And she can
claim as an itemized deduction half of the interest as an interest
expense. John can claim the other half.
If the home is titled as tenants in common and Mary pays the real
estate taxes and home insurance, she can deduct half of the total
payments as alimony and John must include half as alimony. Mary
can claim as an itemized deduction half of the real estate taxes
and none of the home insurance. John can deduct the other half of
the real estate taxes.
If the home is titled as tenants by the entirety or in joint tenancy,
and Mary pays the taxes and home insurance, she can deduct none
of the payments as alimony. Mary can claim as an itemized of deduction
all of the real estate taxes and none of the home insurance.
This information comes from Publication 504 (Divorced or Separated
Individuals) of the Internal Revenue Service. You may download a
copy by going to http://www.irs.gov/pub/irs-pdf/p504.pdf.
2. New Product - Divorce Survival Kit™
The Divorce Survival Kit is the ultimate divorce resource
for your clients. To find out more, go to
www.DivorceSurvivalStore.com. I personally guarantee that your
clients will save thousands of dollars in your divorce as a result
of having the information that they receive in the Divorce Survival
Kit.
3. Free Teleclass
I will also be hosting a FREE teleclass for your clients who are
going through divorce on Tuesday, Dec. 8. It is called "5 Ways
to Survive Your Divorce Financially." To
enroll, click here.
And in both the Divorce Survival Kit and the Free Teleclass,
I promote you, the Real Estate Divorce Specialist!
4. Divorce Funny
The secret to successful investing for retirement is to keep your
first wife!
5. Thought for the Day
It's a great satisfaction knowing that for a brief point in
time you made a difference.
-- Irene Natividad
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