Question

Answer the following questions:

If your answer is zero, enter "0".

a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $1,365 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $955 per month.

1. How much of each $1,365 payment may be deducted as alimony by Joan?
$

2. How much of each $1,365 payment must be included in Bill's taxable income?
$

3. How much would be deductible/included if the divorce agreement were dated 2019?
$

b. Under the terms of a property settlement executed during 2018, Jane transferred property worth $571,050 to her ex-husband, Tom. The property has a tax basis to Jane of $456,840.

1. How much taxable gain must be recognized by Jane at the time of the transfer?
$

2. What is the amount of Tom's tax basis in the property he received from Jane?
$

Answer 1

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