Question

Jake pays the following amounts to his former spouse during the current year:

Regular alimony payments $12,000
Child support 10,000
Residence as part of a property settlement 115,000.

What amount can Jake deduct as alimony for the current year? Assume the divorce occurred before 2019.

a. $0
b. $12,000
c. $22,000
d. $137,000

Answer 1

Answer:

b. $12,000

Explanation:

Jake can only deduct for alimony the exact amount that corresponds to alimony, in this case $12,000.

Alimony are direct payments that are made to the former spouse after the divorce takes place, and and are not the same as child support, or property settlement payments.

For this reason, Jake cannot deduct for alimony any of the $10,000 that he paid in child support, or any of the $115,000 that he paid as part of the property settlement.