Irs Publication 555 - Community Property (Page 3 of 17) in pdf

you intend to use for an indefinite or unlimited period, and

intent is the determining factor in proving where you have

to which, when absent, you intend to return. The question

your domicile.

Note. When this publication refers to where you live, it

of your domicile is mainly a matter of your intention as

indicated by your actions. You must be able to show with

means your domicile.

facts that you intend a given place or state to be your

permanent home. If you move into or out of a community

Community or Separate

property state during the year, you may or may not have

community income.

Property and Income

Factors considered in determining domicile include:

•

Where you pay state income tax,

If you file a federal tax return separately from your spouse,

•

you must report half of all community income and all of

Where you vote,

your separate income. Likewise, a RDP (and an individual

•

Location of property you own,

in California who is married to an individual of the same

•

Your citizenship,

sex) must report half of all community income and all of his

or her separate income on his or her federal tax return.

•

Length of residence, and

Generally, the laws of the state in which you are domiciled

•

Business and social ties to the community.

govern whether you have community property and com-

munity income or separate property and separate income

for federal tax purposes. The following is a summary of the

Amount of time spent. The amount of time spent in one

general rules. These rules are also shown in Table 1.

place does not always explain the difference between

home and domicile. A temporary home or residence may

Community property. Generally, community property is

continue for months or years while a domicile may be

established the first moment you occupy the property. Your

property:

Table 1. General Rules — Property and Income: Community or Separate?

Community property is property:

Separate property is:

•

That you, your spouse (or RDP/California same-sex

Property that you or your spouse (or RDP/California

spouse), or both acquire during your marriage (or

same-sex spouse) owned separately before your

registered domestic partnership/same-sex marriage in

marriage (or registered domestic partnership/same-sex

California) while you are domiciled in a community

marriage in California).

property state. (Includes the part of property bought with

•

Money earned while domiciled in a noncommunity

community property funds if part was bought with

property state.

community funds and part with separate funds.)

•

Property either of you received as a gift or inherited

•

That you and your spouse (or RDP/California same-sex

separately during your marriage (or registered domestic

spouse) agreed to convert from separate to community

partnership/same-sex marriage in California).

property.

•

Property bought with separate funds, or exchanged for

•

That cannot be identified as separate property.

separate property, during your marriage (or registered

domestic partnership/same-sex marriage in California).

•

Property that you and your spouse (or RDP/California

same-sex spouse) agreed to convert from community to

separate property through an agreement valid under

state law.

•

The part of property bought with separate funds, if part

was bought with community funds and part with

separate funds.

Community income

Separate income

1,2,3

is income from:

1,2

is income from:

•

Community property.

Separate property. Separate income belongs to the

•

Salaries, wages, or pay for services of you, your spouse

spouse (or RDP/California same-sex spouse) who owns

(or RDP/California same-sex spouse), or both during

the property.

your marriage (or registered domestic partnership/

same-sex marriage in California).

•

Real estate that is treated as community property under

the laws of the state where the property is located.

Caution: In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income.

Caution: Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year. In some

states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. In other

states, it is separate income.

Caution: Under special rules, income that can otherwise be characterized as community income may not be treated as community income

for federal income tax purposes in certain situations. See

Community Property Laws

Disregarded, later.

Publication 555 (March 2012)

Page 3

Irs Publication 555 - Community Property Page 3

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