Question

In a 2018 divorce settlement, the ex-husband was required by court order to pay his ex-wife $36,000 in alimony in 2019. She received $25,000 in cash, a painting valued at $10,000, and the use of his beach house, valued at $3,000. What amount of gross income should she report as alimony?

Answer 1

Answer:

$25,000

Explanation:

Only alimony received in cash by the recipient spouse is taxed as regular income. The painting and the use of the beach house are not included in her gross income.

In the other hand, the ex-husband will only be able to deduct from his gross income the cash he paid his ex-wife as alimony.

Starting in 2019, the receiving spouse will not pay taxes but the paying spouse will not be able to deduct them either.