CHAPTER 17: Long Term Tax Implications

CHAPTER 17: Long Term Tax Implications

Long term tax implications are not exactly the ting you might be thinking about at this time but it is something you should consider. Why do I care about this you might think? There are real long term gains and loses here. If you end up in a different tax bracket because you have no deductions that can mean thousands of dollars a year on top of if you don’t get the child tax credits that may be another $1000. Those thousands ad up especially over the next 18 years. That could be $40,000 your letting go directly to the person that caused the problem.

Custody does determine a lot of the possibilities for taking exemptions. For instance if you and your spouse have 50-50 sharing of time you may each get 50-50 tax benefits, BUT this is not guaranteed! YOU CAN WAVE THIS. DO NOT!!! I repeat DON'T. If your ex-spouse does not make any money and does not plan on it if you can calculate the tax benefit and negotiate getting both children as deductions it could be a great deal. You can even for example pay a little longer alimony (assuming it's a limited time) and get the ta write off for alimony and get he tax exemptions you need to offset your Single Filer Status.

*** USE AT YOUR OWN RISK. I am not a lawyer and this is not to be construed as legal advice. For any legal decision see the proper legal representative. You are the master of your soul.