The conversation came up at tax season with our estate attorney that we might consider a "legal divorce" in order to reduce tax basis by filing separately.
Pretty damn sad when that conversation comes up.
We’ve actually had the same conversation.
As we don’t have children, and the city/state services frankly suck, we get very little benefit from the enormous amounts of taxes we pay.
It’s tempting to divorce her and live together - maybe even “rent” part of the house to her - and let her get some of the assistance that’s available. We could probably make out pretty well.
Sometimes I think the only solution left is to help collapse the corrupt system we have.
“The conversation came up at tax season with our estate attorney that we might consider a “legal divorce” in order to reduce tax basis by filing separately.
Pretty damn sad when that conversation comes up.”
Years ago during the Clintoon years before Newt rammed the tax decreases through, we were maxed out on our 401’s, HSA’s and IRA’s. I had an excellent sales the year before with an excellent bonus paid that year. My wife had gotten a good raise. So our Income had really ballooned up from previous years.
In December we got a call from our CPA, a lady who, also, went to our church, whom we had known for decades. She suggested that we fly to a quickie divorce country and get a divorce for tax reasons. My wife didn’t speak to her for a couple of months. We didn’t fly and divorce.
Flash forward a couple of years, and my company offered me an excellent retirement. The retirement income came in a bundle in Jan the next year. Thanks to the Clintoon’s tax policy, I couldn’t buy into the company 401K and could fund an IRA for the measly 2 k maximum. The Max of FICA and Medicare were deducted from the lumpsum with the estimated taxes for that coming year.
After looking over the offer and crunching the numbers, the same accountant called us in at the end of the year and told us that I should not work at all the first year as we were going to be killed with what she call Hilliarly’s tax policies which handled that retirement like a sales bonus. She said that we would probably have borrow from our 401K to help pay for the extra taxes that year. Fortunately, somehow the company had its 401k that allowed withdrawals at age 55 if we were retired. I was 56, and we did borrow to pay for the taxes. I didn’t work that year, and my wife didn’t speak to our friend for a few weeks again.