Discussion Question $4-14($LO$.4,6)$

William and Abigail, who live in San Francisco, have been experiencing problems with their marriage. They have a three$-$year$-$old daughter, April, who stays with William's parents during the day $($and with William other times$)$ because both William and Abigail are employed. Abigail worked to support William while he attended medical school, and now she has been accepted by a medical school in Mexico. Abigail has decided to divorce William and attend medical school. April will stay in San Francisco because of her strong attachment to her grandparents and because they can provide her with excellent day care.

Abigail knows that William will expect her to contribute to the cost of raising April. Abigail also believes that to finance her education, she must receive cash for her share of the property they accumulated during their marriage. In addition, she believes that she should receive some reimbursement for her contribution to William's support while he was in medical school. She expects the divorce proceedings to take several months. The couple has come to you for advice regarding the tax consequences surrounding their divorce. What can you tell them?

Select "Yes" or $"$No$"$ to classify those that are applicable and those that are not.

$$Will gains and losses from the sale of property pursuant to the divorce be subject to tax?

$$Would payments with respect to William's contribution toward her education be taxable to her?

$$Will April qualify as dependent for either taxpayer?

$$Does the fact that she will be living outside the United States $($in Mexico$)$ while attending medical school change her filing status?

$$April will likely be considered the dependent of William after the divorce?