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Tax consequences for separation of long term same sex relationship

tax question - i was in a 30 year gay relationship, that we separated in Aug 2008, and we did a separation agreement, where he got 70,000 cash, one car and personal belonging.

my quesiton is can this be deducted on taxes as alimony payment? I had to cash in my IRA inorder to pay this, i kept all property, house, boat, 3 cars, and furniture and all debts.

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Attorney answers (1)

Reputation Level 10
Were you legally married? If not, then you cannot deduct the payments as alimony. Plus, the right to such deductions is generally based on a court order. It sounds as if your separation agreement was a private matter, not trough a court. In addition, it is quite possible that your former partner will have taxable income from the sale of his half of the assets to you. Code section 1041 allows tax-free transfers between spouses, but I'm not sure that he would qualify. In addition, if you are under age 59 1/2, you will be subject to a 10% penalty on the early withdrawal of money from your IRA.

You most certainly need to consult with a tax attorney familiar with marriage laws and federal and state tax laws in Tennessee.

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