Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 17, Problem 5AP
Ann Moore receives a $1,000 monthly payment from her former husband Bill. How much of the $12,000 annual receipt is included in Ann’s AGI under each of the following assumptions?
- a. The monthly payment is alimony that Bill is required to pay under the Moores’ 2017 divorce decree.
- b. The monthly payment consists of $600 alimony and $400 child support that Bill is required to pay under the Moores’ 2017 divorce decree.
- c. The monthly payment is a gift from Bill, who is not legally obligated to pay anything to Ann under their divorce decree.
- d. How would your answers to (a), (b), and (c) change if the Moores’ divorce decree was executed in March 2019?
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Ann Moore receives a $1,000 monthly payment from her former husband Bill. Assume the taxable year is 2022.
Required:
a. How much of the $12,000 annual receipt is included in Ann's AGI assuming the monthly payment is alimony that Bill is required to
pay under the Moores' 2017 divorce decree?
b. How much of the $12,000 annual receipt is included in Ann's AGI assuming the monthly payment consists of $600 alimony and
$400 child support that Bill is required to pay under the Moores' 2017 divorce decree?
c. How much of the $12,000 annual receipt is included in Ann's AGI assuming the monthly payment is a gift from Bill, who is not legally
obligated to pay anything to Ann under their divorce decree?
d. How much of the $12,000 annual receipt is included in Ann's AGI under assumptions a, b, and c if the Moores' divorce decree was
executed in March 2020?
Complete this question by entering your answers in the tabs below.
Required A Required B
X Answer is not complete.
Required C
Annual receipt…
Answer the following questions:
Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $450 per month.
(a) How much of each $700 payment may be deducted as alimony by Joan?
(b) How much of each $700 payment must be included in Bill’s taxable income?
____________________
(c) How much would be deductible/included if the divorce agreement were dated 2021?
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, $700 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $450 per month.
1. How much of each $700 payment may be deducted as alimony by Joan?
2. How much of each $700 payment must be included in Bill's taxable income?
3. How much would be deductible/included if the divorce agreement were dated 2021?$fill in the blank 4d94da045fa2015_3
b. Under the terms of a property settlement executed during 2021, Jane transferred property worth $450,000 to her ex-husband, Tom. The property has a tax basis to Jane of $425,000.
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?
Chapter 17 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 17 - Prob. 1QPDCh. 17 - Discuss the tax policy reasons why gifts and...Ch. 17 - In what way does the tax law give preferential...Ch. 17 - Prob. 4QPDCh. 17 - A basic principle of federal tax law is that a...Ch. 17 - Prob. 6QPDCh. 17 - If an individual purchases property insurance on...Ch. 17 - Prob. 8QPDCh. 17 - Last year, both the Burton family and the Awad...Ch. 17 - Prob. 10QPD
Ch. 17 - Prob. 11QPDCh. 17 - Prob. 12QPDCh. 17 - Prob. 1APCh. 17 - Prob. 2APCh. 17 - Buddy Bushey is a student at a local community...Ch. 17 - Four years ago, Lyle Mercer was injured in a...Ch. 17 - Ann Moore receives a 1,000 monthly payment from...Ch. 17 - Will and Sandra Emmet were divorced this year. As...Ch. 17 - Prob. 7APCh. 17 - Mr. and Mrs. Nester had the following items of...Ch. 17 - Prob. 9APCh. 17 - Milt Payner purchased an automobile several years...Ch. 17 - Conrad South, a business executive, is an avid...Ch. 17 - Prob. 12APCh. 17 - Mr. and Mrs. Compton paid 9,280 of medical...Ch. 17 - Mr. and Mrs. Moss have major medical and dental...Ch. 17 - Mr. Curtis paid the following taxes. To what...Ch. 17 - Mrs. Stuart paid the following taxes. To what...Ch. 17 - Prob. 17APCh. 17 - Mary Vale contributed a bronze statuette to a...Ch. 17 - Prob. 19APCh. 17 - Prob. 20APCh. 17 - Mr. and Mrs. Remy have the following allowable...Ch. 17 - Prob. 22APCh. 17 - Prob. 23APCh. 17 - Prob. 24APCh. 17 - Mr. and Mrs. Marcum live in Southern California in...Ch. 17 - Prob. 26APCh. 17 - Sandy Assam enjoys betting on horse and dog races....Ch. 17 - Prob. 28APCh. 17 - Mr. and Mrs. Kim, married filing jointly, own a...Ch. 17 - Ms. Imo, who is single, purchased her first home...Ch. 17 - Prob. 31APCh. 17 - Prob. 32APCh. 17 - Prob. 33APCh. 17 - Prob. 1IRPCh. 17 - Prob. 2IRPCh. 17 - Prob. 3IRPCh. 17 - Prob. 4IRPCh. 17 - Prob. 5IRPCh. 17 - Prob. 6IRPCh. 17 - Prob. 7IRPCh. 17 - Mrs. Newton, who is a self-employed author, paid...Ch. 17 - Prob. 9IRPCh. 17 - Prob. 10IRPCh. 17 - Prob. 11IRPCh. 17 - Prob. 12IRPCh. 17 - Prob. 13IRPCh. 17 - Prob. 14IRPCh. 17 - Prob. 15IRPCh. 17 - Prob. 16IRPCh. 17 - Prob. 1RPCh. 17 - Prob. 2RPCh. 17 - Prob. 3RPCh. 17 - Prob. 4RPCh. 17 - Prob. 5RPCh. 17 - Prob. 1TPCCh. 17 - Prob. 2TPCCh. 17 - Prob. 3TPCCh. 17 - Prob. 1CPCh. 17 - Mrs. Cora Yank (age 42) is divorced and has full...Ch. 17 - Tom and Allie Benson (ages 53 and 46) are...
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