Question: answer the following questions if your answer is zero enter...
Answer the following questions:
If your answer is zero, enter "0".
a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $1,365 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $955 per month.
1. How much of each $1,365 payment may be deducted as alimony by
2. How much of each $1,365 payment must be included in Bill's
3. How much would be deductible/included if the divorce
agreement were dated 2019?
b. Under the terms of a property settlement executed during 2018, Jane transferred property worth $571,050 to her ex-husband, Tom. The property has a tax basis to Jane of $456,840.
1. How much taxable gain must be recognized by Jane at the time
of the transfer?
2. What is the amount of Tom's tax basis in the property he
received from Jane?