In re Ava B. (Tennessee 2017)

No. E2017-00440-COA-R3-JV
December 2017

When calculating income for child support, capital losses apply only in the year in which they occurred and cannot be carried over into subsequent years. The father appealed the juvenile court’s calculation of his income. The father’s income varied, so the juvenile court averaged his income for several years. The juvenile court did not give father credit for capital losses that occurred from 2007 – 2009 in his adjusted gross incomes for 2013 and 2014. The appellate court upheld the juvenile court’s decision. It found that it would be unreasonable to carry over the capital losses for such a lengthy time. The appellate court noted that income is figured differently under the tax code and for a different purpose. The appellate court also found the mother’s decision to become a stay-at-home parent did not mean she was voluntarily and willfully unemployed.