4. Lori and Luke are planning to divorce. Their stock portfolio contains shares of High Tech, Inc., with a basis of $70,000 and a FMV of $100,000, and shares of Realty, Inc., with a basis of $130,000 and a FMV of $100,000. What tax consequences result if they sell both blocks of stock to third parties while still married, split the cash, and then divorce?

5. Richard and Elizabeth divorced, and their divorce agreement requires that Richard pay the rent for Elizabeths apartment directly to her landlord for five years or until her earlier death or remarriage. Do the rental payments satisfy the definition of tax alimony? See Treas. Reg. 1.71-1T(b), Q&A 6.