Unformatted text preview: The new employer reimburses the Shaﬁer’s for the loss on the sale of the Prince
George home. The reimbursement of $40,000 is taxableggthe Shaffer’s.
True Or False ' -; 1 ‘J/
The $5,000 in mortgage interest incurred while selling their Prince George house
is a deductible moving cost. IA
me... it :i: n imam—’6 sTruej. Or False
x31" 2 Which of the following is not a requirement for spousal support payment to be
/1) Pursuant to divorce agreement
) Paid periodically
@Child support speciﬁed in the agreement '1 Jack and his wife, Sally, separated during 1994. The written separation agreement
required Jack to make payments for the maintenance of Sally and their child. Payments
were set at $250 per month for Sally and $150 per month for their child. Payments are
made on the ﬁrst day of each month and Sally has complete discretion as to their use.
Effective June 1, 2000, the agreement was changed to increase the payments to Sally
and their child to $300 per month and $200 per month respectively. There have been
no other variations to the agreement and Jack and Sally have not ﬁled any elections
pertaining to the payments. How much of the 2000 payments can Jack deduct on his
2000 personal tax return? A. $2,000
as $3,350 to; $4,100
if $5,500 ...
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- Spring '11