Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purcha
Posted: Wed Jul 06, 2022 6:26 am
Casper and Cecile divorced in 2018. As part of the divorcesettlement, Casper transferred stock to Cecile. Casper purchasedthe stock for $142,500, and it had a market value of $228,000 onthe date of the transfer. Cecile sold the stock for $199,500 amonth after receiving it. In addition, Casper is required to payCecile $7,125 a month in alimony. He made five payments to herduring the year.
What are the tax consequences for Casper and Cecile regardingthese transactions?
a. How much gain or loss does Casperrecognize on the transfer of the stock?
b. Does Casper receive a deduction for the$35,625 alimony paid? Yes
c. How much income does Cecile have fromthe $35,625 alimony received?
d. When Cecile sells the stock, how muchgain or loss does she report?Cecile will report a gain of $_______?
What are the tax consequences for Casper and Cecile regardingthese transactions?
a. How much gain or loss does Casperrecognize on the transfer of the stock?
b. Does Casper receive a deduction for the$35,625 alimony paid? Yes
c. How much income does Cecile have fromthe $35,625 alimony received?
d. When Cecile sells the stock, how muchgain or loss does she report?Cecile will report a gain of $_______?