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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 deductible? /1) Pursuant to divorce agreement Living apart ) 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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