Stan and Anne were divorced in January 2012. fte provisions of the divorce decree and Anne's obligations follow: (1.) Transfer the title in their resort condo to Stan. At the time of the transfer, the condo had a basis to Anne of
$75,000, a fair market value of $95,000; it was subject to a mortgage of $65,000.
(2)) Anne is to make the mortgage payments for 17 years regardless of how long Stan lives. Anne paid $8,000 in 2012.
(3)) Anne is to pay Stan $1,000 per month, beginning in February, for 10 years or until Stan dies. Of this amount,
$300 is designated as child support. Anne made ﬁve payments of $900 each in 2012 (February-June). What is the amount of alimony from his settlement that is includible in Stan's gross income for 2012?

Question

Quizplus · Accepted Answer

Stan must include $3,000 in his 2012 income
 Only item 3 is considered alimony. Stan received $600 per month for ﬁve months. Item 2 is not considered alimony because payments may continue even if Stan dies.

Stan and Anne Were Divorced in January 2012