Taxpayer and Spouse divorced in 2017. Under the terms of the decree, laxpayer pays Sp remarriage). In addition, Taxpayer transferred a home worth $2,000,000 to Spouse in 207 and will pay $12.000 per year to support their son until he turns 19 years old in 2024. Determine the amount included in Spouse's gross income in 2021. $50,000 $2,050,000 $62,000 $2.062,000

Taxpayer and Spouse divorced in 2017. Under the terms of the decree, laxpayer pays Sp remarriage). In addition, Taxpayer transferred a home worth $2,000,000 to Spouse in 207 and will pay $12.000 per year to support their son until he turns 19 years old in 2024. Determine the amount included in Spouse's gross income in 2021. $50,000 $2,050,000 $62,000 $2.062,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 16P

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Similar questions

Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her 21,000 per month in 2020 for a total of 252,000. Freda countered that she would accept 10,000 each month for the 12 months in 2020 and the remaining 132,000 in January 2021. The employer accepted Fredas terms for 2020 and 2021. a. Did Freda actually or constructively receive 252,000 in 2020? b. What could explain Fredas willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the 132,000 in 2020, the employer offered 133,000 to Freda at that time, rather than 132,000 in January 2021. The employer wanted to make the early payment so as to deduct the expense in 2020. Freda rejected the employers offer. Was Freda in constructive receipt of the income in 2020? Explain.
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