DEAR BRUCE: Our son lives in California and we live in Nevada. He attends college and has a part-time job. We loan him money for rent every month and pay his yearly car insurance. My question is, does he have to report any of this to the IRS? He is 27 years old. -- J.Q., via e-mail

DEAR J.Q.: I'm starting to wonder if this guy is ever going to cut the cord. Be that as it may, if you loan him money, obviously, you can loan as much as you wish. If you give him money, which is what you're doing, you are limited to $11,000 a year under ordinary circumstances. If you're not claiming him as a dependent, I can't imagine that there is going to be any problem other than what is he going to do when you finally decide that enough is enough? That is a tough problem for both of you and one you might wish to consider addressing.

DEAR BRUCE: My friend has a home with a $190,000 mortgage, plus a $40,000 home-equity loan. I don't think the house would even sell for $190,000 in today's market -- maybe $170,000 if she could find a buyer. She also has about $25,000 in credit card debt. She makes about $65,000 per year. Her husband has been unemployed for almost two years. Now her husband wants a divorce. Her plan is to move out of the house and let it go into foreclosure and then declare bankruptcy. Is this the best plan? I hate to see her credit history destroyed, although it already may be, since she has been juggling her bills for at least a year. -- D.D., via e-mail

DEAR D.D.: You mentioned the mortgage, the home-equity loan and the credit card debt. You didn't indicate any assets. Is this the case? If she has other assets, that would color the situation. But if it is just as you have stated, she is underwater for something on the order of $70,000 plus an additional $25,000 in credit card debt, which would very likely, at the very least, indicate an investigation into Chapter 7. I'm sure her husband who has been unemployed is going to look for alimony or support of some kind. I think her credit is the least of her problems. Before she even moves out, she needs to consult a divorce attorney.

DEAR BRUCE: I was married in November for the first time. I'm 47. We currently keep our money separate, and I would like to know the pros and cons of filing married jointly or separately. -- D.C., via e-mail

DEAR D.C.: I have no problem with keeping your money separate. That observed, it almost never pays for the average or above-average couple to file separately. There are tax penalties that are almost impossible to overcome. I have no problem with keeping things in your marriage in separate names, separate accounts, etc. However, your accountant will tell you that there is no advantage to filing separately.