* The divorce or separation instrument must not designate nonalimony treatment.
In later proceedings the state divorce court increased this amount to more than $26,000, holding that the original agreement was "unconscionable" The Seventh Circuit provided a definition of the term designate that has been used as a touchstone to solve tax dilemmas in several recent cases.
A simple statement that the parties designate the payments as excludable/nondeductible under code sections 71 and 215 would have avoided this result.
The wife argued that her half of the pension was not alimony because a property settlement in a divorce clearly comes under the nontaxable umbrella of section 1041--yet another taxpayer learned the hard way that labeling carries no weight unless it is explicit "tax labeling." Again, a statement that the parties designate the payments as excludable/nondeductible under code sections 71 and 215 would have avoided this result.
It says "a taxpayer once having filed a return in which replacement property is not designated may not later designate property acquired during that year as qualified replacement property." This clearly eliminates the possibility of amending a return to designate replacement property.
For example, letter ruling 8424026 allowed a taxpayer to amend a return to designate replacement property.
* Taxpayers must designate property to complete an election.
According to the FSA, a taxpayer cannot amend a return to designate replacement property.
Finally, partners owning a majority interest in the partnership (both general partners and limited partners) may designate the TMP.
(14) The partnership may also designate an alternate TMP who would be effective if the current TMP leaves the partnership, dies or becomes legally incapacitated.
The court stated that while the Service is authorized to designate a TMP, it is not compelled to do so if the rights of the parties have not been prejudiced.
780), introduced as companion bills by Senator Alan Cranston and Representative Mel Levine, would designate 4.3 million acres of BLM Wilderness and transfer 3.2 million acreas of BLM-managed land to the National Park Service.
Wayne Owens, would designate more than five million acres of BLM Wilderness in that state.