Segal Cohen & Landis Reviews New Federal Tax Breaks for Same Sex Couples

Since the Supreme Court’s historic June 26 decision on same-sex marriage another question has been looming. Will the IRS apply the law of the state where same sex couples live, or the law of the state where they were married? The U.S. Department of the Treasury and the IRS have determined that only the state where they were married, the state of celebration, will matter for tax purposes.

According to Deborah Jacobs at Forbes this means that for example, if you are legally married in New York, the IRS will consider you married even if you retire to Florida, a state that does not allow same-sex marriage.

Under the IRS ruling, which will to be published on Sept. 16, same-sex couples will be treated as married for all federal tax purposes, including income and gift and estate taxes. Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country will be covered by the ruling.

 

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