With respect to alimony and property settlements in a divorce or separation,all of the following are true with the exception of
A)a property settlement does not result in income to either spouse.
B)no tax deduction is allowed for payment of a property settlement.
C)the spouse receiving a property settlement has a basis equal to the basis of that property to the paying spouse prior to payment.
D)no deduction is allowed for alimony paid to the former spouse if a property settlement is also paid.

Question

Quizplus · Accepted Answer

D)Alimony is taxable to the payee and deductible by the payor; a property settlement has no tax consequences.

With Respect to Alimony and Property Settlements in a Divorce