QUESTION 8 In determining if something is compensation or a gift, what do the Courts look at a they look at all of them b did transferor take a tax deduction in exchange for the property Did transferee claim it as income If yes, it was meant to be compensation if no, then a gift c Was the exchange due to a detached and disinterested generosity If so, then it was a gift if no, it is compensation d Did one party have to perform some type of service in order to receive the money If so, then it is compensation if no, it is a gift QUESTION 9 Who pays the tax on alimony a Pre 1985 divorce agreements, payor deducts it payee includes it as income b Pre 1985, no one gets either a deduction or includes it in income c Post 1985, payor doesn't deduct it but payee reports income d Post 1985, payor deducts it payee includes it as income QUESTION 10 What is the tax treament of jury duty a it is included in gross income however, if employer requires employee to pay it back in exchange for compensation, it is deductible FOR AGI b it is excluded from gross income because it used to reimburse taxpayer for travel expenses to from the courthouse c it is excluded from gross income however, if employer requires employee to pay it back in exchange for compensation, it is included FOR AGI d it is included in gross income however, if employer requires employee to pay it back in exchange for compensation, it is deductible FROM AGI

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Posted on Sep 28, 2024

QUESTION 8

In determining if something is compensation or a gift, what do the Courts look at?

	a.	they look at all of them
	b.	did transferor take a tax deduction in exchange for the property? Did transferee claim it as income? If yes, it was meant to be compensation; if no, then a gift
	c.	Was the exchange due to a detached and disinterested generosity? If so, then it was a gift; if no, it is compensation
	d.	Did one party have to perform some type of service in order to receive the money? If so, then it is compensation; if no, it is a gift

QUESTION 9

Who pays the tax on alimony?

	a.	Pre-1985 divorce agreements, payor deducts it; payee includes it as income
	b.	Pre-1985, no one gets either a deduction or includes it in income
	c.	Post-1985, payor doesn't deduct it but payee reports income
	d.	Post-1985, payor deducts it; payee includes it as income

QUESTION 10

What is the tax treament of jury duty?

	a.	it is included in gross income; however, if employer requires employee to pay it back in exchange for compensation, it is deductible FOR AGI
	b.	it is excluded from gross income because it used to reimburse taxpayer for travel expenses to/from the courthouse
	c.	it is excluded from gross income; however, if employer requires employee to pay it back in exchange for compensation, it is included FOR AGI
	d.	it is included in gross income; however, if employer requires employee to pay it back in exchange for compensation, it is deductible FROM AGI