17. True. 18. False. *The medical expenses paid by a former husband are not considered alimony. He may deduct the expenses on his tax return only as medical expenses. 19. True. *This is prepaid rent. 20. True. 21. False. *Security deposits, if they are to be returned at the end of the lease period, are not considered rental income. 22. True. 23. True. 24. True. 25. False. *Transferring of property in settlement of marital rights does not trigger recognition of gain. Also, the basis of the property remains $10,000. 26. False. *Transferring of property in settlement of marital rights does not trigger recognition of gain. Also, the basis of the property remains $10,000. 27. False. *Payments made to maintain property owned by the payor-spouse do not qualify as alimony. 28. False. *The amount of annual payments is limited to $15,000 29. False. *Joan’s payments are considered child support and are not deductible by Joan. 30. True.
31. False. *She received the money in February 2012 and that is when it is taxable. 32. True. 33. True. 34. True. 35. False. *Interest on U.S. savings bonds is taxable. There is an exception to when the interest is used to pay for college expenses. 36. False. *Property settlements cannot be treated as alimony. 37. True. 38. False. *It is taxable when it is credited to her account. 39. True.
- Spring '14
- Business, Taxation in the United States, cash basis taxpayer