Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $82,500, and it had a market value of $132,000 on the date of the transfer. Cecile sold the stock for $115,500 a month after receiving it. In addition Casper is required to pay Cecile $4,125 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $20,625 alimony paid? c. How much income does Cecile have from the $20,625 alimony received?
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $82,500, and it had a market value of $132,000 on the date of the transfer. Cecile sold the stock for $115,500 a month after receiving it. In addition Casper is required to pay Cecile $4,125 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $20,625 alimony paid? c. How much income does Cecile have from the $20,625 alimony received?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter10: Individuals: Income, Deductions, And Credits
Section: Chapter Questions
Problem 1CE
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