If wanting to keep separate property separate, should I file "Married but Filing Separate"

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schrute
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If wanting to keep separate property separate, should I file "Married but Filing Separate"

Post by schrute » Mon Jan 22, 2018 1:18 am

I'm in California and I read that if you want to keep your appreciating assets separate if you're married, you should file as "Married, Filing Separate". It seems terrible to do from reducing a tax liability standpoint, but being able to maintain separate property, I think is worth it. This article states it: https://www.forbes.com/sites/robertwood ... zuckerberg

"While 95% of married couples file joint tax returns, you might be surprised to find that the tax savings by filing jointly are often small. If Mr. Zuckerberg hopes to keep assets separate--more about that below--he’s better off filing separately."

This seems majorly erronous...

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HueyLD
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Re: If wanting to keep separate property separate, should I file "Married but Filing Separate"

Post by HueyLD » Mon Jan 22, 2018 7:36 am

The Forbes’ article is totally worthless.

You do not need to file a separate return to keep your separate properties separate.

Filing a separate return in a community property state is very complicated and you still have to report half of your spouse’s communiy income.

If you are serious and very interested in protecting your multimillion dollar investments, you need to contact an attorney licensed in your state.

schrute
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Re: If wanting to keep separate property separate, should I file "Married but Filing Separate"

Post by schrute » Mon Jan 22, 2018 10:24 am

HueyLD wrote:
Mon Jan 22, 2018 7:36 am
The Forbes’ article is totally worthless.

You do not need to file a separate return to keep your separate properties separate.

Filing a separate return in a community property state is very complicated and you still have to report half of your spouse’s communiy income.

If you are serious and very interested in protecting your multimillion dollar investments, you need to contact an attorney licensed in your state.
Thanks for the answer! Why would this guy be advocating for it? The same applies for separate property of appreciating assets (not just assets)?

fabdog
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Re: If wanting to keep separate property separate, should I file "Married but Filing Separate"

Post by fabdog » Mon Jan 22, 2018 10:32 am

I agree the article is worthless.

If you read carefully he doesn't actually advocate filing separately to protect assets, he just sort of hints at it in the filing section, and says see below. But then he never comes back to it

As HueyLD notes, this is a very complex issue but tax filing is not the issue, and a good lawyer should be engaged if you have serious $$ to worry about

Mike

schrute
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Re: If wanting to keep separate property separate, should I file "Married but Filing Separate"

Post by schrute » Tue Jan 23, 2018 11:28 pm

fabdog wrote:
Mon Jan 22, 2018 10:32 am
I agree the article is worthless.

If you read carefully he doesn't actually advocate filing separately to protect assets, he just sort of hints at it in the filing section, and says see below. But then he never comes back to it

As HueyLD notes, this is a very complex issue but tax filing is not the issue, and a good lawyer should be engaged if you have serious $$ to worry about

Mike
Got it. So tax filing is something not to worry about here?

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