Guest bouncingsoul Posted August 4, 2006 Posted August 4, 2006 Does anyone know the criteria that would need to be met in order to exclude a spouse's business? I believe there are 5 points that need to be met? Anyone know what they are or a link? Thanks.
Leopurrd Posted August 4, 2006 Posted August 4, 2006 There's 4 by my count: -spouse has no direct ownership in business -spouse does not participate (manage/direct, etc) -no more than 50% of the business' gross income can be from passive activities -spouse can't be "next in line" to take the business (like a right of first refusal) Be careful though; if they have a child then you have a CG due to simple attribution... the child is deemed to own 100% of each parent's ownership. Vicki
Belgarath Posted August 4, 2006 Posted August 4, 2006 If it is a community property state, be careful as well. (There are differing legal opinions on this - some are of the opinion that community property automatically confers direct ownership upon the spouse, others disagree.)
Appleby Posted August 4, 2006 Posted August 4, 2006 See http://www4.law.cornell.edu/uscode/search/...63----000-.html Scroll down to 'spouse' Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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