Accounting Question West LA College Accounting 015 Spring 2021 Midterm Exam Question 1
1. A couple will be getting divorced in 2019, resulting in the payment of alimony. Alimony paid in 2019 will be
a. included in income by the payor and deducted by the payee.
b. deductible by the payor and included in income by the payee.
c. deductible by both the payor and the payee.
d. an item which does not affect the payor’s or the payee’s tax reporting.
Answer is: D. An item which does not affect the payor’s or the payee’s tax reporting
Explanation: Beginning jan 1, 2019, alimony is no longer deductible to the paying spouse’s income and also no longer taxable income of the receiving spouse