John and Carol are divorced on September 1, 1991. Their separation agreement requires John to pay Carol $500 a month for her support until she dies. Use the guidelines of this chapter to answer the following questions, which present a number of variations in the case of John and Carol.

a. Carol has an automobile accident. To help her with medical bills, John sends her a check for $900 with the following note: “Here’s my monthly $500 payment plus an extra $400 alimony to help you with your medical bills.” Can John deduct the entire $900 as alimony?

b. A year after the divorce, Carol has trouble paying her state income tax bill of $1,200. John wants to give her a gift of $1,200 in addition to his regular $500 monthly alimony. He sends $1,200 to the state tax department on her behalf. Can John deduct the $1,200 as alimony?

c. Assume that in the September 1, 1991, divorce, Carol is awarded $1,500 a month in alimony, effective immediately and payable on the first of each month. John makes a payment on September 1, 1991, and on October 1, 1991. During this time, John lived in the basement of their home, which has a separate entrance. He moves into his own apartment in another town on October 25, 1991. Which of the following 1991 payments, if any, are deductible:
$1,500 (on September 1) and $1,500 (on October 1)?

d. Assume that under the divorce decree, John must make annual alimony payments to Carol of $30,000, ending on the earlier of the expiration of fifteen years or the death of Carol. If Carol dies before the expiration of the fifteenyear period, John must pay Carol’s estate the difference between the total amount he would have paid her if she survived and the amount actually paid.
Carol dies after the tenth year in which payments are made. John now pays her estate $150,000 ($450,000  $300,000). How much of the $300,000 paid before her death is deductible alimony? How much of the $150,000 lump sum is deductible alimony?

e. Assume that under the terms of the separation agreement, John will pay Carol $200 a month in child support for their teenage child, Nancy, and $900 a month as alimony. If Nancy marries, however, the $900 payment will be reduced to $400 a month. What is deductible?

f. Assume that under the terms of the separation agreement, John will pay Carol $200 a month as child support for their only child, Nancy, and $900 a month as alimony. While Nancy is away at boarding school, however, the $900 payment will be reduced to $400 a month. What is deductible?