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Casper and Cecile are divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and
Casper and Cecile are divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Cecile sold the stock a month after receiving it for $40,000. In addition Casper is required to pay Cecile $1,500 a month in alimony. He made five payment to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". Casper recognizes no gain or loss on the transfer of the stock. He receives for the $7,500 alimony paid. Cecile recognizes on the transfer of the stock. She has from the $7,500 alimony received. When she sells the stock Cecile reports a of $fill in the blank 6
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