Tax Overhaul Is Planned for 2018, Leaving Just a Few Weeks to Prepare

Overview


Carlyn McCaffrey advised that individuals should sign before the end of 2017 any divorce or separation agreements that include alimony, given that in the House tax bill alimony ceases to be deductible by the payer in 2018. Ms. McCaffrey said that for a top-bracket spouse required to provide $250,000 of tax-free income to a bottom-bracket spouse, the tax savings from signing an agreement in 2017 compared with 2018 would be about $43,000.