Preparing for the worse case- important for everyone, but especially so for gay and lesbian couples. A general power of attorney is a must have. Make sure you have this document in the unlikely case you, or your partner become incapacitated due to medical conditions.
Power of Attorney Critical for LGBT Couples by Lawyersdotcom
Introduction You know how it is. You and your guy have been together for a long time now, way past “the honeymoon period” characteristic of the early stages of a relationship. You know each other inside and out and have…
For lesbian and gay couples, each partner should include only his or her share of real estate taxes paid on jointly-owned property.They should not file together on either parties tax forms.
This would apply to couples as it relates to his or her share of mortgage interest as well. Each partner should only report his or her share and on their own tax filings!
As a reminder, you should always look at your own situation and possibly consult with a tax advisor to see if this applies to you. Have more tips for the readers, please feel free to share!
Housing Market by 401(K) 2013
Courtesy of www.SeniorLiving.org
Have a partner? Have more than one home, perhaps two, three or four? One of the few advantages of being a gay couple as it relates to tax law is that you are allowed in most cases to deduct the mortgage interest paid on each home.
It goes this way, tax laws for everyone either gay or straight allow mortgage interest paid to be deducted on one primary residence and one vacation home. In the case of gay or lesbian couples, you are allowed to deduct per person since you are not married in the eyes of the Federal Government and therefore in the eyes of the Internal Revenue Service.
As always, we do suggest consulting with our accountant or tax attorney to make sure these deductions apply to your situation, but in most cases they will.
One benefit in our column as it relates to tax law!
Do you know of other benefits? Share them with others by posting a reply.
Even though the 1996 of the DOMA – Defense of Marriage Act may be going away which is a great thing, at least for now, lesbian and gay couples may not use either of the married filing statuses. (married filing a joint return or married filing a separate return)
So unless you are able to file as a heterosexual couple or married filing a separate return, you must use the single filing status.
Your filing status affects both the size of your deduction which will be lower as a single filer versus a married filer, and also tax rates are lower for married couples filing joint returns versus single filers. Also numerous other tax benefits (deductions and credits) are not offered single filers.
Money and Tax Return by 401(K) 2013
For lesbian and gay couples. shifting income to a partner in a lower tax bracket can be a good planning strategy, provided that doing so does not bump the “lower bracket” partner into a high tax bracket.
Weigh your options and as always make sure you keep it legal. Dealing with the Internal Revenue Service and their myriad of rules and regulations is complicated and for gay and lesbian couples living together, even more so!
cash by seanmcmenemy
Courtesy of Have a Gay Day
Have a partner? Have more than one home, perhaps two, three or four? One of the few advantages of being a gay couple as it relates to tax law is that you are allowed in most cases to deduct the…
