Go to content Go to menu
 


Property And Income Community Or Separate

 Property and Income: Community or Separate?

If you and your spouse file separate returns and live in a community property state, you have to determine your community income and your separate income. Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Registered Domestic Partners (RDPs) who are domiciled in Nevada, Washington, or California and to individuals in California who, for state law purposes, are married to an individual of the same generally must follow state community property laws and report half the combined community income of the individuals and his or her RDP (or California same-spouse). cheap Falcons jerseys This article applies to individuals who meet the above criteria.

If you file a federal tax return separately from your spouse or RDP, you must report half of all community income and all of your separate income. Generally, the laws of the state in which you are domiciled govern whether your property and income is community or separate for federal tax purposes. Below is a summary of these general rules.

Community Property is property:
•That you, your spouse (or RDP/California same spouse), or both acquire during your marriage (or registered domestic partnership/same marriage in California) while you are domiciled in a community property state. This includes the part of property bought with community property funds if part was bought with separate funds and part with community funds.
•That you and your spouse (or RDP/California same spouse) agreed to convert from separate to community property.
•That cannot be identified as separate property.

Separate Property is:
•Property that you or your spouse (or RDP/California spouse) owned separately before your marriage (or registered domestic partnership marriage in California).
•Money earned while domiciled in a non community property state.
•Property either of your inherited separately or received as a gift during your marriage (or registered domestic partnership marriage in California).
•Property exchanged for separate property or bought with separate cheap Redskins nike jerseys funds, during your marriage (or registered domestic partnership marriage in California).
•Property that you and your spouse (or RDP/California spouse) agreed to convert from community property to separate property. This must have been done through an agreement valued under state law.
•The part of property bought with separate funds, if part was bought with separate funds and part with community funds.

Community Income is income from:
•Community property.
•Salaries, wages, or pay for services of you, your spouse (or RDP/California
spouse), or both during your marriage (or registered domestic partnership marriage in California).
•Real estate that is treated as community property under the laws of the state where the property is located.

Separate Income is income from:
•Separate property. Separate income belongs to the spouse (or RDP/California spouse) who owns the property.

Some states, such as Idaho, Louisiana, Texas and Wisconsin classify community and separate income differently, so be sure Jets jerseys cheap to check your state law.

Your tax preparer can provide you with more information regarding the treatment of community property on your income tax return. StrataTax, a San Diego consulting and tax services firm, is available year-round to assist you with income tax preparation and tax planning. Call us at (858) 225-7720 to setup your free initial consultation or visit us at www.StrataTax.com for more cheap jerseys information. 

 

 
 

 


Archive

Calendar
<< January / 2019 >>