Question

Charleston Camellia got divorced in 2018 under the terms of the decree Charles Pace Camilia $50,000 in cash in each of the next 5 years or until Camellias death Armory marriage. In addition Charles transfer to Castle worth two million to Camilia in 2018 and will pay $12,000 per year to support their son Clyde until he turns 19 years old what amount if any is included in Camellias gross income in 2019?

Answer 1

Amounts paid as alimony or separate maintenance payments under a divorce or separation instruments executed after 2018 won't be includible in the income of the recipient.Such is true for alimony paid under a divorce or separation instrument executed before 2019 and modified after 2018, if the modification expressly states that the alimony isn't includible in the income of the recipient.

A payment that is specifically designated as child support or treated as specifically designated as child support under a divorce or separation instrument isn't alimony.Such child support payments aren't taxable to payee.

In the mentioned question it is clear that the divorce decree happened after 2018 and that all the payment are covered under the terms of the decree none of it will be included in the income of Camellia in 2019.