Under the alimony rules:
A)To determine whether a cash payment is alimony, one must consult the state laws that define alimony.
B)A person who receives a property division has experienced an increase in wealth and thus should be subject to tax.
C)Alimony paid per a 2015 divorce agreement is included in the gross income of the recipient of the payments.
D)A person who earns $90,000 and pays $20,000 in alimony per a divorce agreement entered into in 2020, is allowed to deduct the $20,000.
E)None of these.

Question

Quizplus · Accepted Answer

Under the tax rules prior to the Tax Cuts and Jobs Act of 2017, alimony payments were included in the recipient's gross income if the divorce agreement was finalized before 2019.

Under the Alimony Rules