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When calculating child support in Illinois, can payroll earnings be reduced by the amount depreciation exceeds rental income?
Anonymous2 views3 answers
When depreciation exceeds rental income, it can be used to reduce the tax burden. This amount is allowed as a negative entry in the calculation of adjusted gross income on US form 1040. Can the negative amount also be used to reduce net income for purposes of calculating child support?
Although you make an Interesting argument, it is very unlikely that negative income such as you describe would be relevant for purposes of calculation of child support. To answer otherwise would encourage obligors to incur negative income.
I do to think there is any scenario that would be possible unless that was your main business and your income was derived from it. Do you pay chikd support on the income you have derived from the rental (s)? Go talk to a lawyer who has background in taxes and family law. It sounds like a long shot.
no. depreciation is an accounting and tax concept. it is not a cash outlay.
there are lots of cases that say child support income is different from income tax income.
