How can I calculate the separate property portion of an IRA?
The treatment of growth in the IRA as marital or separate property is a matter of state law, so you should always consult the law in your state. If you have IRA statements as of the date of the marriage, the separate property portion of an IRA typically is held to be the value of […]
How can I change the description or label of an expense item?
Note that this will change the label only for that party. If you want to change the label for both parties to be the same thing, you must do that for each party. This gives you the flexibility to have a labeled item that applies only to one party.
Why does the total expense number on the financial affidavit not match the Budget Report?
There are several reasons why the Budget Report and financial affidavit might not be the same. Several of, these relate to timing issues. The goal of the financial form is to reflect expenses at the current moment. But the Budget Report builds in the ability to capture future financial events. The reasons for differences between […]
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 […]
How should I enter vehicle (car, truck) expenses in the software?
There are a number of ways to enter vehicles into the software, depending on the situation. Asset side: Personal Items. Most people will want to enter the current market value of the car, or an average value, as a Personal Item on the screen where you enter assets screen. Payment side: On the payment side, […]
How can I specify some expenses as “discretionary” in the software?
Go to the screen where you are entering living expenses. At the top, click the name of the party whose expenses you want to show. Click “more info” on any Living Expense. You will see the section to specify that part or all of the expense is discretionary, as shown below. The effect of marking […]
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 […]
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 do liquidations work in the software?
Whenever there is net cash outflow in a given year (expenses exceed income), the software automatically liquidates assets to cover the cash outflow. This topic will cover how the calculations work and how to track them through the software. How the Calculations Work When assets are liquidated, tax has to be paid. The way the […]
How can I handle installment sales and notes receivable?
You can enter a note receivable, or an installment sale, as an investment asset. Outside the software, figure the amortization of the note receivable or installment sale note, and the portion of each payment that is return of capital, interest income, and capital gain. Create the asset. Enter just the description at the top level, […]