Question
Mr. and Mrs. X's divorce was finalized in Dec 2017. Per the decree, monthly alimony payments are to be made from Mr. X to Mrs.
Mr. and Mrs. X's divorce was finalized in Dec 2017. Per the decree, monthly alimony payments are to be made from Mr. X to Mrs. X starting in Jan 2018. They ask you for advice re the alimony for 2018 tax planning purposes. Which of the following is true?
a.Per TCJA 2017, Mr. X can deduct the alimony payments from gross income in 2018, but not between 2018 and 2025, and Mrs. X will need to include the alimony payments in income for 2018, but not between 2018 and 2025.
b.Mr. X can deduct the alimony payments from gross income in 2018 and beyond, and Mrs. X will need to include the alimony payments in income.
c. Per TCJA 2017, Mr. X cannot deduct the alimony payments from gross income in 2018 and beyond, and Mrs. X will not need to include the alimony payments in income.
d.Per TCJA 2017, Mr. X can deduct the alimony payments from gross income in 2018, but not thereafter, and Mrs. X will need to include the alimony payments in income for 2018, but not thereafter.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
