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
A)$100,000.
B)$155,000.
C)$170,000.
D)$270,000.

Question

Quizplus · Accepted Answer

A)Only the $100,000 alimony is a "for AGI" deduction for Thomas.

Thomas and Sally Were Divorced Last Year