Chapter 10 Individuals - Chapter 10 Individuals Income Deductions and Credits Alimony Child Support and Property Settlements Alimony is o Deductible by

Chapter 10 Individuals - Chapter 10 Individuals Income...

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Chapter 10 Individuals: Income, Deductions, and Credits Alimony, Child Support, and Property Settlements Alimony is o Deductible by payer o Includible in gross income of recipient Child support payments o Payments made to satisfy legal obligation to support child of taxpayer o Nondeductible by payer and not taxed to recipient (or child) Interspousal Property settlements o Transfer of property to former spouse o No deduction or recognized gain or loss for transferor o No gross income and carryover of transferor’s basis for transferee Prizes and Awards General rule: FMV of item is included in income Exceptions o Taxpayer designated qualified organization to receive prize or award o Employee achievement awards of tangible personal property made in recognition of length of service or safety achievement. Unemployment compensation is taxable in full Social Security Benefits o A portion of Social Security income is taxable to the extent that a taxpayer’s provisional income exceeds certain base amounts
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  • Fall '14
  • fabioambrosio
  • Accounting, Taxation in the United States, social security benefits, provisional income

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