Casper and Cecile divorced in $2018.$ As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $$42,500,$ and it had a market value of $$68,000$ on the date of the transfer. Cecile sold the stock for $$59,500$ a month after receiving it$.$ In addition Casper is required to pay Cecile $$2,125$ a month in alimony. He made five payments to her during the year.

What are the tax consequences for Casper and Cecile regarding these transactions?

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Lets break down the tax consequences for Casper and Cecile regarding these transactions For Casper T... View the full answer