What the income tax ramifications of alimony structured in

Assignment Help Macroeconomics
Reference no: EM13314659

John and Mary are divorcing. John is demanding that Mary pay him $75,000 of alimony in the first year after the divorce, $50,000 in the second year, and $25,000 in the third and all subsequent years until he dies or remarries. What are the income tax ramifications of alimony structured in this manner?

Reference no: EM13314659

Questions Cloud

Refundable security deposit equal to one month rent : A landlord requires tenants to pay at the beginning of their lease an amount equal to 3 months of rent. He informs the tenants that this is for the first month's rent, the last month's rent, and a refundable security deposit equal to one month's rent..
Jason owns a computer repair shop. jason needs some repair : Jason owns a computer repair shop. Jason needs some repair work done on his company car, so he agrees to repair the computer at Bob's Auto Repairs in exchange for fixing the car.
Judge hearing this case how would you rule : Walter used the cash method to account for income from his cattle ranch. During an audit in year 3, the IRS auditor discovered a document from a customer indicating that Walter sold 115 head of cattle to the customer two years earlier for $77,000.
Explain all the tax consequences of these events for both : Joe owes Willy $5,000 from an old gambling debt. Joe knows that there is no way he can repay the debt in the near future. He asks Joe if he will take a $25,000 life insurance policy that has a cash surrender value
What the income tax ramifications of alimony structured in : John and Mary are divorcing. John is demanding that Mary pay him $75,000 of alimony in the first year after the divorce, $50,000 in the second year, and $25,000 in the third and all subsequent years until he dies or remarries. What
What do you think about this proposal : Some politicians have proposed changing the way social security benefits are taxed. One proposal would increase the amount of Social Security benefits included in gross income to 100 percent
Why do you think companies invested in this janitor insurace : Your friend tells you that she read an article about something called “janitor's insurance.” The article said that companies took out life insurance policies on some, if not all, of their employees
State income tax of 5 percent in addition to the federal inc : Mango Corporation has before-tax income of $450,000 and is subject to a state income tax of 5 percent in addition to the federal income tax. What is Mango’s after-tax cash flow?
How much must alana and mac include in gross income : Mac gives his daughter, Alana, 600 shares of Highgrowth stock. Mac purchased the stock 10 months ago at $20 per share. On the gift date, the stock is worth $35 per share

Reviews

Write a Review

Macroeconomics Questions & Answers

  Find the equilibrium prices and profits

Assume that 3-firms which produce a homogeneous output will compete by choosing prices and the market price P is the minimum of the 3-prices that are chosen.

  Explain why using hypothetical numbers to illustrate cases

Use a hypothetical example to illustrate whether you agree or disagree with the following statement, "Unemployment will go up more if the demand for labor is elastic, because the demand for labor will decrease more when you have elastic demand tha..

  Compute the growth rate forecast using constant growth

Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.

  Computation of utility maximization on education

What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?

  Find the opportunity cost

Draw the PPF. If new technology in computer production is invented and adopted, what will happen to the PPF. Find the opportunity cost of first 4 units of computer.

  Assume that initially the goods and services market

Assume that initially the goods and services market is in equilibrium at the potential

  Calculate the elasticity of demand for alcohol consumption

Two economists took a close look at a broad survey of more than 50,000 persons each year from 1987 to 1999. They found that drinkers do reduce their consumption substantially in economic downturns.

  Ethical challenge in hiring non cpa''s

write a paper explaining issues that bring concern to pricing your services and products. what ethical challenges will you face in hiring non CPA's.

  Explain how if at all would your answer change

Explain how if at all would your answer change if you know that ABC's technology had decreasing returns to scale. Explain.

  Now assume the government increases spending reducing

Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.

  What are inability to qualify for jobs that use the skills

Every so often, a disgruntled college graduate sues her school on grounds that her tuition payments did not land her the good job she was expecting when she started there. Courts invariably throw out cases like hers. They are, however, willing to ..

  Elucidate what can you infer from this data

Elucidate what can you infer from this data about labor productivity growth in the US economy during the period.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd