Fred and Wilma divorced in 2016 and have lived apart ever since. Their 2016 divorce agreement, which has not been modified since agreed to, specifies that Fred will pay Wilma $50,000 in cash each year. The agreement states that $15,000 relates to “child support” for their daughter Pebbles. The remaining $35,000 is labeled as “alimony” in the agreement. Of the amount labeled as “alimony”, the agreement specifies that $25,000 of it will terminate upon the death or remarriage of Wilma. The other $10,000 will terminate upon either of those events or upon Pebbles reaching age 18 if earlier. How much of the $50,000 is eligible to be treated as pre-2019 alimony for tax purposes (for-AGI deduction for Fred and gross income for Wilma)? Explain.

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When Fred and Wilma divorced in 2016 they agreed that Fred would pay Wilma 50000 in cash each year O... View the full answer