Question

Nathan and Nancy were divorced in 2016. The divorce agreement required Nancy to pay Nathan $5,000...

Nathan and Nancy were divorced in 2016. The divorce agreement required Nancy to pay Nathan $5,000 a month in alimony. Based on your tax research is the alimony received by Nathan taxable income to him? What if they continued to live together during 20016 and 2017? Would your answer change if the couple lived apart but divorced in 2019? ACCOUNTING

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In case a divorce is finalized before 2019 and before Jan 31, 2018 then alimony given is tax deductible expense for the person paying the alimony. For alimony payments made for divorce executed after Jan 31, 2018, it is said not to be tax deductible as per the amended law.

Thus in the present case Nancy pays alimony to Nathan will be tax deductible income to him due to divorce finalized in the year 2016 as it is before Jan 31, 2018.

If they have been divorced and still they continue to stay together during 2016 and 2017, then alimony payments are tax deductible.

If they have not filed for divorce and are seperated but however lives jointly together then they both file for tax return jointly or seperately together as they are considered as a married couple for the entire year. If the couple is divorced in 2019, then alimony payments received is not tax deductible as per current law.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Required information [The following information applies to the questions displayed below.] Camille Sikorski was divorced in...
Required information [The following information applies to the questions displayed below.] Camille Sikorski was divorced in 2017. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s home for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account (a for AGI deduction). She also received $10,000 of alimony from her former husband (per divorce decree...
- Esterina redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of $12,000...
- Esterina redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of $12,000 principal and $4,000 interest. The net qualifying educational expenses are $10,000. Her AGI is below the threshold for phase-out of the exclusion. The taxable interest is A) $0. B) $1,500. C) $2,400. D) $3,000. - In December 2018, Tatiana, a cash-basis taxpayer, rents an apartment to Hakeem. Tatiana receives both the first and last months' rent totaling $2,000 plus a security deposit of $500....
Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William....
Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William. Mrs. Yank works as a medical technician in a Chicago hospital. Her salary was $38,400, from which her employer withheld $1,045 federal income tax and $2,938 employee FICA tax. Several years ago, Mrs. Yank was seriously injured in a traffic accident caused by another driver’s negligence. This year, she received a $25,000 settlement from the driver’s insurance company: $20,000 as compensation for her physical...
Dorthy who is 55 years old, works as a financial analyst in Capital One bank. Her...
Dorthy who is 55 years old, works as a financial analyst in Capital One bank. Her monthly salary is $13,000. Dorthy is married to John who is 66 years of age and works as a salesman for a local car dealership. His monthly salary from the dealership is $8,500 per month but he has a very flexible schedule so he supplements his salary by accepting an employment in the evening at a high-end restaurant and earn $3,000 per month. They...
Taxable Income Item 1: Matt and Skye Moriarty are a married couple who file a joint...
Taxable Income Item 1: Matt and Skye Moriarty are a married couple who file a joint tax return. Matt is 66. Skye is 40. They got married five years ago. This is the second marriage for them both. Item 2: Matt has a nineteen-year-old son who lives with the couple. The son is a full-time student. Together, Matt and Skye have twin four-year-old daughters who live with them as well. Item 3: Up until last year, Matt was a high-powered...
Taxable Income Item 1: Matt and Skye Moriarty are a married couple who file a joint...
Taxable Income Item 1: Matt and Skye Moriarty are a married couple who file a joint tax return. Matt is 66. Skye is 40. They got married five years ago. This is the second marriage for them both. Item 2: Matt has a nineteen-year-old son who lives with the couple. The son is a full-time student. Together, Matt and Skye have twin four-year-old daughters who live with them as well. Item 3: Up until last year, Matt was a high-powered...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe,...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm. During 2016, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income—    City of Albuquerque general purpose bonds $1,000    Ford Motor company bonds 1,100    Ally Bank certificate of deposit 400 2,500 Child...
Develop a 2018 individual tax return (with all required forms and supporting schedules) for Rob and...
Develop a 2018 individual tax return (with all required forms and supporting schedules) for Rob and Laura Petrie that is both professional in appearance and technically correct. The use of tax software or a professional tax preparer to complete this project is prohibited. You can access fill-in forms (in pdf format) on the IRS website (www.irs.gov) by clicking on “More” on the left side of the homepage in the “Forms and Pubs” section. Next, click on the “Current Forms and...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of external and internal analysis, business and corporate strategy, and corporate governance, please discuss the following questions: 1. What is the corporate strategy behind the merger of Xerox and Fujifilm? 2. Why did Xerox agree to the merger? Is this a good deal for Xerox? Discuss the benefits and challenges they face with the merger. 3. Why did Fujifilm agree to the merger? Discuss the...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT