[WSBAPT] Filing jointly vs separately and effect on CP

[Martin Silver]

without citing chapter and verse, federal law determines how property is taxed, while state law determines the nature and extent a party has interest or rights in property.  Filing jointly is an election made at the federal level regarding just that, taxation at the federal level, with effects at the federal level ( joint and several liability for the tax for example, certain ceiling ands floors per irs rules for another) but it does not affect the character of the property.  IRS publications contain discussion in fact as to how separate income is reported on joint returns, which can go on year after year.  That said, my separate property marital agreements usually do specify that filing of joint returns does not effect a conversion of CP to SP to rebut any inference of an intent to convert.   You might stress the need to remain diligent in maintaining the separate vs. community distinction in all respects so there is no commingling under state law principles.   If you need it I can give you some citations to the publications but I think if you googled your question you would come up with those citations.   


From: Jennifer Y. Sohn 
Sent: Friday, March 27, 2015 1:05 PM
To: 'WSBA Probate & Trust Listserv' 
Subject: [WSBAPT] Filing jointly vs separately and effect on CP

Hi, I was wondering if filing tax returns jointly vs separately has any impact on whether the reported assets are considered community or separate property. One of my clients has kept her separate assets separate from the community property and has also been filing the tax returns separately too. She and her husband are having discussions about filing jointly, and we are wondering if that will be considered commingling. I don’t think it would, but please let me know if you have any insights about this.

 

Thanks in advance.

 

 

Best regards,

 

Jennifer Y. Sohn

Attorney at Law 

(Licensed in CA and WA)

Sohn Law PLLC

10900 NE 4th Street, Suite 1850

Bellevue, WA 98004

Tel: 206.617.7874

Fax: 425.732.9748 

Email: jennifer at sohn-law.com

http://www.sohn-law.com

 

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