Question

Self-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year, Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "o". Deductible by Includable by Details payor recipient The payments are made in 2017 as part of a divorce decree executed in 2016. b. The payments are made in 2018 as part of a divorce decree executed in 2016. The payments are made in 2018 as part of a divorce decree executed in 2018. The decree makes no mention of the TCJA provisions. The payments are made in 2019 as part of a divorce decree executed in 2018. The divorce decree is modified in 2019 to explicitly apply the provisions of the TCJA The payments are made in 2019 as part of a divorce decree executed in 2016. The payments are made in 2019 as part of a divorce decree executed in 2019. d. e. f.

Answer 1

a b Serial no Deductable by payer Includable by receipent $12000 $12000 $12000 $12000 $12000 $12000 d $0 $0 $12000 $12000 f $0 $0 с e Note: If the divorce or separation agreement was finalized in Before 31december 2018 Payor No Deduction allowed Receipent Do not include in the taxable income as tax is paid by payor If the divorce or separation agreement was finalized in After 31 december 2018 Payor Deduction is allowed Receipent Should include in the taxable income as tax is not paid by the payor