a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $4,680 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $3,276 per month.

1. How much of each $4,680 payment may be deducted as alimony by Joan?
$

2. How much of each $4,680 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 in 2019, Jane transferred property worth $816,750 to her ex-husband, Tom. The property has a tax basis to Jane of $653,400.

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 rating: 100% (QA)

a 1 3276 3276 may be deducted as alimony by Joan of each 4... View the full answer