Exam 11: Tax Consequences of Separation and Divorce

Match each numbered entry with the most relevant lettered entry below -one of the requirements for deductible alimony

What are the tax consequences of child support to the payor and payee?

Match each numbered entry with the most relevant lettered entry below -something that may or may not occur

In a property division as part of a divorce, the basis of the property in the hands of the transferee is the same as the basis of the property in the hands of the .

Deductible alimony can include stock transferred for the use of support.

Because alimony is deductible, but child-support and property-division payments are not, attempts are sometimes made to child-support or property-division payments as alimony.

Alimony payments not made directly to a spouse cannot be deductible.

The payment of alimony is added to the payor's adjusted gross income.

Name some "alimony" payments tied to contingencies that relate to a child and that, therefore, are nondeductible.

Match each numbered entry with the most relevant lettered entry below -before the outcome of the litigation is known

Match each numbered entry with the most relevant lettered entry below -the result after allowable deductions

List the seven requirements for deductible alimony.

To effect a clause in an agreement is to determine the tax consequences of that clause.

What are the tax consequences of alimony to the payor and payee?

To load means to make substantial "alimony" payments shortly after the separation or divorce in an attempt to disguise nondeductible property division as deductible alimony.

Sam bought a house for $200,000. He spent $50,000 to add a room. He sold the house for $260,000.

Match each numbered entry with the most relevant lettered entry below -occurs within one year after a marriage ends

The price that can be obtained for property by a willing buyer and willing seller is called: