Thomas and Sally were divorced last year. as a result, Thomas must pay Sally alimony of 100,000 per year starting this year and relinquish the house and car with a combined value of 170,000 and a combined cost basis of 155,000. The house and car are given as a property settlement. As a result of these transactions Thomas has a deduction of?© BrainMass Inc. brainmass.com June 3, 2020, 7:40 pm ad1c9bdddf
Thomas will receive a deduction of $100,000 on his tax return for this year. The shuffling of assets ...
The solution discusses the tax treatment of the alimony payment and the transfer of the house.