(a)
If the divorce is covered by prior law (divorce completed before 31st December 2018) then the $20,000 will be a AGI deduction for Fred and the same is taxable in hands of Tammy
(b)
If the divorce is covered by New law (divorce completed after 31st December 2018) then the $20,000 payment will not be allowable for AGI deduction to Fred and also not taxed in the hands of Tammy
(c)
Tammy's basis in the residence will be sane as the basis of Fred in that residence before transfer
So Basis is $100,000
(d)
Tax advisor helps in understanding the after tax implications on both the parties of divorce.
I am using the federal taxation 2018 edition 1. Alimony. As a result of their divorce,...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...