Gina and Tomas obtained a divorce effective May 1, 2018, In accordance with the divorce decree which was not revised post 2018, Tomas was required to pay Gina alimony of $2,500 per month (payments were to stop only in the event of her death or remarriage). Furthermore, he was to transfer title of their house which had a cost of $150,000 and a fair value of $200,000 on the date of transfer, and was to continue making the monthly mortgage payments of $1,500. Determine the amount of Tomas's alimony deduction in 2021. Determine the amount of Gina's alimony income in 2021 Assume that Tomas was required to pay off the remaining mortgage balance in the event that Gina died in 2021. Does Tomas's alimony deduction in 2021 change? Why or why not?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Gina and Tomas obtained a divorce effective May 1, 2018, In accordance with the divorce decree which was not revised post 2018, Tomas was required to pay Gina alimony of $2,500 per month (payments were to stop only in the event of her death or remarriage). Furthermore, he was to transfer title of their house which had a cost of $150,000 and a fair value of $200,000 on the date of transfer, and was to continue making the monthly mortgage payments of $1,500. Determine the amount of Tomas's alimony deduction in 2021. Determine the amount of Gina's alimony income in 2021 Assume that Tomas was required to pay off the remaining mortgage balance in the event that Gina died in 2021. Does Tomas's alimony deduction in 2021 change? Why or why not?
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