July 1, 2012
Tax Aspects of the Tom Cruise-Katie Holmes Divorce
Katie Holmes' master plan to file for divorce in New York may have created HUGE tax problems for Tom Cruise ... sources connected with the couple tell TMZ. ...
Katie filed divorce docs in NYC, in large part because she wants sole legal custody of Suri and New York courts are way more likely to grant Katie sole legal custody and control over child-rearing decisions than California courts. But here's the problem ... sources connected with the couple tell us ... Tom has been trying to do everything legally within his power to avoid strong ties to New York City because the tax rates are ridiculously high ... and he does not want any appearance that he or Katie have been living there. ...
TMZ has obtained documents which show Tom deeded their NYC apartment to Katie last August and our sources say it was done specifically for tax purposes. ... Sources say Katie is using the apartment to establish residency in New York for the purpose of the divorce -- something we're told can screw Tom tax-wise.
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Deeding the property to a spouse won't have any impact on the permanent place of abode analysis. There was one notable case from sorta-recently where a client's ability to crash on his parents' sofa in Staten Island constituted a PPA for purposes of statutory residency. Either TMZ is misunderstanding or Cruise has truly inept tax counsel.
Posted by: jpe | Jul 2, 2012 11:48:13 AM
JPE- Husband and wife may have residency in separate states, which matters more in New York (not community property).
Posted by: Yo Gabba Gabba | Jul 2, 2012 2:06:37 PM
Well done Katie!
Posted by: Frederick | Jul 2, 2012 5:38:03 PM