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

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts

ISBN: 9780135919460

34th Edition

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

See More Books

Question Posted: Nov 19, 2020 01:09 AM

See More Questions

Under a divorce agreement executed in the current year, 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...
Under a divorce agreement executed in the current year, 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...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from...
FinCorp Inc. is exploring different portfolio allocations between two stocks. Complete the following table. Case1 Case 2 Case 3 Case 4 Case 5 $ invested in stock 1 $ invested in stock 2 Total $...
In a follow-up article on Y2K problems, a reporter wants to conduct a survey of small businesses, in order to estimate the true proportion of small businesses that took some action regarding the Y2K...
Define the functional currency, and identify factors suggesting the functional currency. AppendixLO1
On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,000,000 pesos. It will receive payment in three months on September 1. On June 1, Alexander acquired an option to...
New employees at Sun Microsystems begin their orientation sessions after being hired with a computer game. It is part of an attempt to integrate new people, improve the image of the company, get...
Given the numbers reported below, build a budget using the methods discussed in the course. You must show your calculation and resulting budget in the space provided: 4 Points Budget using the...
Explain how johnson and johnson company has utilized the five management functions (planning, organizing, staffing, directing, controlling) throughout this crisis.
Access the Federation of Tax Administrators Internet site at www. taxadmin.org/state-tax-forms and indicate the titles of the following state tax forms and publications: a. Minnesota Form M-100 b....
Explain the difference between closed-fact and open-fact situations.
Solve using any method. ln 4 x = ln x
Charlotte, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its Mul
Sketch a graph of the piecewise defined function. f(x) = Sx if x 0 x+9 if x>0
Complete the information for the following subnetting problem. Your answers should be whole numbers without a period. Example: the correct value for the last octet of 172.20.55.210 would be entered...
Olympia Trophy Company wants to purchase a laser engraving machine to use in its production of trophies. The cost of this engraving machine is $69,546.40 and it will yield yearly expected cash flows...
Scenario: Envirotruck is a company that produces energy efficient all-wheel-drive and 4-wheel-drive trucks (twice as efficient as their competition's) with ample clearance for construction and rough...
Simplify. -6 9
A bubble-point liquid feed is to be distilled as shown in Figure. Use the Edmister group method to estimate the mole-fraction compositions of the distillate and bottoms. Assume initial overhead and...
Tampa Corporation sold the following assets in 2019: a. What is the depreciation deduction for each asset in 2019? b. Compute the gain or loss on each asset sold. Automobile Equipment Building...
Turner Corporation uses the calendar year as its tax year. It purchases and places into service $1.97 million of property during 2019 to use in its business: What is Turner's total depreciation...
Woburn Corporation uses the calendar year as its tax year. Woburn purchases and places into service $1.7 million of depreciable property during 2019: You are working in Woburn's tax department and...
Hite corporation intends to issue $160,000 of 5% convertible bonds with a conversion price of $40 per share. The company has 40,000 shares of common stock outstanding and expects to earn $600,000...
Your portfolio has a beta of 1.17, a standard deviation of 14.3 percent, and an expected return of 12.5 percent. The market return is 11.3 percent and the risk-free rate is 3.1 percent. What is the...
Slow Roll Drum Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $198,000 in additional credit sales, 13 percent are likely to be...

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

Question:

Step by Step Answer:

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

Students also viewed these Business questions