Just Because They Won’t Let You Do it Doesn’t Make it a Good Idea
If a couple chooses to use any of these techniques, the most likely way they would fail on audit is through poor execution. Everything must be done in the same way as it would be done in a truly arms-length transaction. If there is a note for a property sale a mortgage should be recorded. Payments should be made regularly as defined by the terms of the contract.
Windfall For “Unmarried’ Couples
CCA 201021050 may provide a significant windfall for some unmarried couples. It is directed toward registered domestic partners in California and some commentators indicate that it is logically applicable to California same-sex married couples. The ruling emphasizes the point that state law determines the ownership of property and that the taxation of income follows the ownership of that income.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.