Charles J. Reichert, has published his article, Taxpayer allowed a deduction under claim of right in Mihelick v Commissioner (11th Circuit June 18, 2019), in the Journal of Accountancy (Sept. 1, 2019). His articles discusses an eleventh circuit case where a divorced spouse was allowed to deduct her indirect repayment of an amount previously included in her and her former husband’s jointly reported income. His article begins as follows:
The Eleventh Circuit held that a taxpayer could deduct the reimbursement to her ex-spouse for her share of his repayment of an amount previously included as income on their joint tax return during their marriage, reversing the decision of a district court. According to the court, the taxpayer satisfied the requirements of Sec. 1341 even though she had not directly repaid the amount.
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Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.