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Peter Is Required by His Divorce Agreement to Pay Alimony

Question 48

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Peter is required by his divorce agreement to pay alimony of $4,000 a month and child support of $6,000 a month to his ex-wife Stella.What is the tax treatment of these two payments?
To Peter?
To Stella?

Correct Answer:

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Peter may deduct the alimony of $4,000 p...

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