I gave ex wife money to buy her out of my military retirement, how do I deduct cost?

[Carl]

Most likely, you don't. Alimony is deductible by the payer, taxable to the recipient. Child support is taxable to the payer, and not reportable by the recipient. Anything else would result in you receiving a tax reporting document if it was deductible. So if you just "bought her out", you have nothing to claim or deduct.

[bwa]

I agree with Carl, except for a different reason.  The "buy out" sounds like a part of a property settlement.  Amounts paid under property settlements are not deductible.

[Carl]

IN this case, I didn't mention property settlement, because it's obvious (to me) the buyout was not court ordered.

[lmiller01]

The settlement was a QUDRO / court agreement between two parties. I took a HELOC with a local bank. I assume she needs to report the cash to IRS and thus I was hoping some sort of remedy on my part.

[Lisa995]

In a QDRO (assuming it was done correctly) your ex will receive her own 1099R for her portion of the retirement, there's nothing you need to do special.

[lmiller01]

( I took a HELOC with a local bank) The court decree stated I owed X$ for 15 years of my military service and I wrote a check out from a HELOC.  The degree/Domestic order just stated you owe her X$ and was and  my decree /copy was filed with my HRO ensuring no spousal withdrawals because she was made whole/done.

So I ask,,,,, I have no ability to file for a deduction for 2016?  I cant /will not worry what my ex does but I am now filing single and question to this forum.  Thank you for in advance for the responses.

[Carl]

Sorry, but you have nothing to claim since "you" wrote a check out. It kinda mikes me question the competency of your legal representation. But if all you wanted to do was get this matter out of your life and behind you forever, sounds to me like you succeeded.

[lmiller01]

Thank you all, trust but verify <a rel="nofollow" target="_blank" href="https://www.irs.gov/help-resources/telephone-assistance">https://www.irs.gov/help-resources/telephon... I/m pretty sure you all are correct...No need to respond folks.

[Opus 17]

It's all here.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/uac/about-publication-504">https://www.irs.gov/uac/about-publication-504</a>

[Carl]

Sounds like a fellow ditty-bopper. If you don't understand that term, don't ask.

[Opus 17]

No, there is no tax deduction for a division of property or retirement assets at the time of the divorce. You can deduct the HELOC interest as a mortgage interest deduction subject to the usual rules for HELOC loans.  If you had elected to distribute part of your retirement pay to her instead, that would not have been a tax to duction either. You simply would have to pay less tax on less income. Now, you will be getting your full income.