The Oroscos were granted a decree of divorce effective January 1,2014.In accordance with the decree,César Orosco is to pay his wife $24,000 a year until their only child,Ricardo now 11,turns 18,and then the payments will decrease by $11,000 per year.For 2014,how much can César deduct as alimony?

Question

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Alimony payments must meet certain requirements in order to be deductible on a tax return. In this case, the payments meet the requirements for deductible alimony, because they were granted by a divorce decree or separation agreement, are in cash, and will end upon the death of the recipient. However, only the portion of the payments that qualify as alimony can be deducted.

For 2014, César will pay $24,000 in alimony, since his son is still under 18. Therefore, he can deduct $24,000 as alimony on his tax return for 2014. It's important to note that the payments will decrease by $11,000 for each subsequent year as Ricardo gets older. So, in future years, César will need to adjust the amount he deducts on his tax return to reflect the decreasing alimony payments.

The Oroscos Were Granted a Decree of Divorce Effective January