Question

QUESTION 43 The underlying rationale for the alimony rules for agreements or decrees entered into on or before 12/31/2018 is that: Alimony is a payment for the taxpayer's property and therefore, it is taxed to the recipient. The fruit and tree metaphor should be rigorously applied. The income should be taxed to the person who enjoys the benefits of the income. od The income should be taxed to the person with a claim of right to the income e None of the above.

Answer 1

C. The income should be taxed to the person who enjoys the benefits of the income.

Alimony or separate maintenance payments are deductible from the income of the payer spouse and included in the income of the receiving spouse, if made under a divorce or separation agreement executed on or before Dec. 31, 2018, even if the agreement was modified after December 31, 2018.

Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or included in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.