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    Taxability of property transfers in divorce

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    Carolyn, who earns 400,000 is required to pay John, her ex husband 200,000 as part of the property settlement as a result of their divorce. In turn, John transfers stock worth 50,000 to Carolyn. What is the amount of Carolyn's adjusted gross income for the year?

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    Carolyn's AGI for the year is $400,000 because transfers incident to divorce (property settlements) are not ...

    Solution Summary

    The solution discusses the differences between alimony and property transfers including the taxability of each. The amount of Carolyn's adjusted gross income for the year are determined.