Question

By contract entered into in 1991, Spouse 1 and Spouse 2 (former spouse as of January...

By contract entered into in 1991, Spouse 1 and Spouse 2 (former spouse as of January 2, 2015 ) agreed ‘that any property either of us now has or may hereafter acquire * * * in any way, either by earnings (including salaries, fees, etc.), or any rights by contract or otherwise, during the existence of our marriage, or which we or either of us may receive by gift, bequest, devise, or inheritance, and all the proceeds, issues, and profits of any and all such property shall be treated and considered, and hereby is declared to be received, held, taken, and owned by us as joint tenants, with the right of survivorship.’ The validity of the contract under the law of the State of Wherever is not questioned, nor is the fact that it survived the divorce of the spouses questioned.

Should Spouse 1 be taxed for all of the salary and attorney's fees earned by Spouse 1 in 2016 and 2017 or should be taxed for only a half of them in view of a contract with his wife. (Ignore any possible family law issues).

country tax is USA

• Yes or

• No

Homework Answers

Answer #1

Country tax is USA

• Yes

When you are married and file a joint return, your income is combined.

Spouse 1 be taxed for half of the salary and attorney's fees earned by Spouse 1 in 2016 and 2017 in view of a contract with his wife.

In estate law, joint tenancy is a special form of ownership by two or more persons of the same property. The individuals, who are called joint tenants, share equal ownership of the property and have the equal, undivided right to keep or dispose of the property. Joint tenancy creates a Right of Survivorship.

In general, income from jointly-held property is taxed in proportion to the income each tenant is entitled to receive pursuant to local law. Gains from the sale or disposition of property are treated similarly.

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