The underlying rationale for the alimony rules is that:
A)The income should be taxed to the person with a claim of right to the income.
B)The income should be taxed to the person who enjoys the benefits of the income.
C)The fruit and tree metaphor should be rigorously applied.
D)Alimony is a payment for the taxpayer's property and,therefore,it is taxed to the recipient.
E)None of the above.

Question

Quizplus · Accepted Answer

The rationale for the alimony rules is that the income should be taxed to the person who enjoys the benefits of the income. Alimony is intended to provide support to a former spouse who may have given up career opportunities or income-earning potential to support the couple during the marriage. Therefore, the recipient of the alimony payments is considered the one who benefits from the income and should be taxed on it.

The Underlying Rationale for the Alimony Rules Is That