Rossow: changes to US alimony tax spell confusion

Tim Rossow CPA, principal at Rehmann, discusses the incoming changes to US matrimonial tax, under which where you get married, where you live and where you might get divorced is going to make a big difference

When it comes to alimony, tax law is going to turn back time when new reforms introduced by President Trump come into force in 2019. More precisely, 75 years back in time - that was when alimony was first made deductible for the spouse paying it and taxable income for the spouse receiving it; the fact that the payment was deductible came up quite a bit when consulting spouses through divorce.

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