LGBT home owners are destined to be more prosperous now that DOMA (the Defense of Marriage Act) has been struck down by the Supreme Court but only if they are married and live in a state that has legalized gay marriage.
Currently gay couples can only marry in twelve states and the District of Columbia. There are another seven states that recognize gay relationships as civil unions but it has yet to be seen if the striking down of DOMA creates more red tape or less red tape for gay couples trying to do the same things financial as their heterosexual neighbors. An example would be filing joint tax returns to acquire tax deductions. In the states without recognition, gay couples will be filing a return to their state without joint deductions plus a dummy return to submit with their federal tax return that does shows deductions. In this bureaucratic equivalent of a contortionist act the couple ends up filing as if they were in a state that recognizes gay marriage with a return that is only done to prop up their federal deductions.
Financial management may become more complex than ever but at the same time more disposable income for gay couples may be the picture as a result. However there may be a bit of a wait for this money to actually be in the hands of gay couples. Apparently the Internal Revenue Service computer system has yet to recognize gay marriage and automatically rejects any tax applications that have two same sexes marked on it. This glitch, mentioned on many forums and gay activist websites, needs to be fixed so that applications are not denied on a technicality to do with filling in application fields.
In the “marriage equality states” same-sex couples are now also eligible for Social Security spousal benefits. This will make it easier for these couples to demonstrate a larger income and secure better homes. However this once again, only applies opt those LGBT citizens living in the states that give them the freedom to be married.
The most prosperity and well-being is indicated for those couples that move to a state that recognizes gay marriage and that also recognizes gay marriages performed in another state. The Supreme Court decision did leave a harmful provision in place that does not require any state to recognize a gay marriage performed in another state. This loss of status can result in a financial blow that could keep potential LGBT buyers renting. Unfortunately couples who move to a state that refuses to recognize a legal status established elsewhere may not be able to get the same tax breaks, pension rights and property rights available to heterosexual married couples whose status is recognized all over the country.
If you are married and living in one of the states where gay marriage is recognized you are highly advised to file an amended tax return as you are now allowed to file jointly and receive the financial benefits of tax deductions. Generally, amended federal returns can be filed for any years still open under the three-year stature of limitations on refunds. However, refunds could be claimed on older years if the couple previously filed a protective claim to keep the statute of limitations open just in case this Supreme Court ruling was overturned.
Now that DOMA is struck down many gay couples that are renters or who just could not afford to buy a house may finally be able to arrange their relationships and finances so that they can do so.
Author Jeff Hammerberg is the Founding CEO of GayRealEstate.com. Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers.
