I have some bad news. Goose is separating from his wife Carole. This is going to be so hard on Rooster, their 10 year old son. They have agreed for Carole to stay in the house with Rooster. Goose has found a 2 bedroom apartment near the house and he will have custody of Rooster on weekends. Carole gave Goose $5,000 to help with the damage deposit and other expenses related to moving to the apartment. She has also agreed to pay the monthly rent of $1,200 and transfer another $1,500 per month

Question:

How is the $5,000 payment treated for tax purposes?

Answer rating: 100% (QA)

The 5000 payment from Carole to Goose to help with the damage deposit and o... View the full answer