McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 38

Matt and Lori recently were divorced.Although grief stricken, Matt was at least partially comforted by his monthly receipt of $10,000 alimony.He was particularly excited to learn from his friend, Denzel, that the alimony was not taxable.Use an available tax service to determine if Denzel is correct.Would your answer change if Matt and Lori continued to live together?