Can I change the title of the Marital Property Division Report (Community Property Division Report)?
Yes, You can create a custom title for the Marital Property Division report (also known as the Community Property Division report). At the top of the Marital Property Division report screen, click the link for options. On the options screen, at the bottom, you can enter the new title. You can do a similar thing […]
Can a party who does not live in the marital residence claim the mortgage deduction for it?
In general, a party must live in a residence in order to claim the mortgage deduction for it. For more information, see IRS publications 504 and 936. In Publication 936, search for the definition of “qualified home.” An exception may apply if the title is in joint names and the payer is obligated to pay […]
How can I enter restricted stock units (RSU)?
Question: How can I enter Restricted Stock Units (RSU) into Family Law Software? Answer: Restricted stock units are promises by the employer to grant specified numbers of shares of stock to the employee in the future. Typically, restricted stock units are granted over time, following vesting periods. A restricted stock unit (RSU) may be forfeited […]
How can I enter capital loss carryforwards?
You may choose one of two approaches: 1. View/Edit Taxes. One approach is to figure out how much of that carryforward will be able to be deducted each year, then open the report labeled “View/Edit Taxes” and enter that amount as a negative amount in the row for capital gains and losses. The "View/Edit Taxes" […]
How can I enter data from a K-1?
There are partnership K-1s (Form 1165) which are different than S Corporation K-1s (Form 1120). In both cases, typically, the most important numbers are on lines 1-3. You can enter ordinary income and guaranteed payments as Business income, and specify the type of business as partnership or S Corp as appropriate. You can enter rental […]
Is it possible to set an assumption that all net cash flow is spent rather than saved and invested?
We understand the motivation for this — a spendthrift spouse will spend all available cash in ways that cannot be forseen — but it is not possible to do that in the software. In a way, such an option would defeat the purpose of the software, which is to show where the parties will be […]
A third party (such as a grandparent) has custody of the child. How can I calculate the child support that each of the two parents owes to the third party?
We are not aware of any state in which there is a formula for this. One approach would be the following: 1. Enter the parent parties’ incomes and the children. 2. Set custody with the first party, with the actual # of overnights that the 2nd party has assigned to 2nd party. 3. This would […]
How should I enter restricted vs unrestricted stock options?
A stock option is a right in which the company gives the employee the right to buy a number of shares of the company’s stock, usually at the current price. Let’s say the price when the option is issued is $100 a share. If the stock price goes up by $10, say, the employee has […]
How do I show a retirement from a business, or sale of a business?
Go to the “more info” screen for the business. You will see a question about whether the business owner will retire or the business will be sold. the question is worded this way so it can cover both retirement and sale. This is where you enter a sale or retirement date. If the business has […]
Why are state taxes different for itemized deductions than for “actual” state taxes?
This is due to the software’s resolving of a bit of circular logic. Federal taxable income depends on the state tax, because state tax is an itemized deduction. But in some states, state tax depends on federal taxable income. So the computation is circular. Here’s how the software resolves this: For the calculation of the […]