Wilma divorced Barney last year.This year she received the title to their boat that cost $45,000 and is now worth $55,000.Barney paid Wilma $1,500 per month,$500 for alimony and $1,000 for support of their two children.Wilma owed $60,000 to the bank for a loan on a failed business.To satisfy the debt,she transferred title of the boat to the bank and paid an additional $5,000.What are the tax consequences of these transactions for Barney and Wilma?

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The Answer of Wilma divorced Barney last year.This year she received the title to their boat that cost $45,000 and is now worth $55,000.Barney paid Wilma $1,500 per month,$500 for alimony and $1,000 for support of their two children.Wilma owed $60,000 to the bank for a loan on a failed business.To satisfy the debt,she transferred title of the boat to the bank and paid an additional $5,000.What are the tax consequences of these transactions for Barney and Wilma?

Wilma Divorced Barney Last Year