Under a divorce agreement executed in 2017, an ex-wife receives from her former husband cash of $25,000

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Under a divorce agreement executed in 2017, an ex-wife receives from her former husband cash of $25,000 per year for eight years. The agreement does not explicitly state that the payments are excludable from gross income.

a. Does the ex-wife have gross income? If so, how much?

b. Is the former husband entitled to a deduction? If so, is it for or from AGI? Refer only to the IRC in answering this question. Start with Sec. 71.

c. How did the Tax Cuts and Jobs Act of 2017 change the alimony rules?

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Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts

ISBN: 9780135919460

34th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse

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Question Posted: Nov 19, 2020 01:09 AM

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Under a divorce agreement executed in 2017, an ex-wife receives from her former husband cash of $25,000

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a Yes According to Secs 71a and b the wife includes 25000 per year Also the divorce ag...View the full answer

Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts

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