What are the tax consequences for Casper and Cecile regarding these transactions?
23.              
Casper and Cecile are divorced this year. As part of the divorce settle- ment, Casper transferred stock to Cecile. Casper purchased the stock for
$25,000, and it had a market value of $43,000 on the date of the transfer.   Cecile
sold the stock for $40,000 a month after receiving it. In addition Casper is required to pay Cecile $1,500 a month in alimony. He made five payments to       her during the year.
What are the tax consequences for Casper and Cecile regarding these transactions?
a.     How much gain or loss does Casper recognize on the transfer of the stock?
b.    Does Casper receive a deduction for the $7,500 alimony paid?
c.     How much income does Cecile have from the $7,500 alimony received?
d.    When Cecile sells the stock, how much does she report?
Answers
Status NEW
Posted 24 May 2017 11:05 AM
My Price 7.00
-----------
Attachments
file 1495626588-Answer.docx preview (226 words )
2-----------3.Â-----------  ----------- Â-----------  ----------- Â-----------  ----------- Â-----------  ----------- Â-----------  -----------Cas-----------per----------- an-----------d C-----------eci-----------le -----------are----------- di-----------vor-----------ced----------- th-----------is -----------yea-----------r. -----------As -----------par-----------t ----------- of----------- -----------the----------- di-----------vor-----------ce -----------set-----------tle------------ m-----------ent-----------, ----------- Ca-----------spe-----------r ----------- tr-----------ans-----------fer-----------red----------- -----------sto-----------ckÂ----------- t-----------o ----------- Ce-----------cil-----------e.Â----------- C-----------asp-----------erÂ----------- p-----------urc-----------has-----------edÂ----------- t-----------heÂ----------- s-----------toc-----------k f-----------or ----------- $2-----------5,0-----------00,----------- an-----------d i-----------t ----------- ha-----------d a----------- -----------mar-----------ket----------- va-----------lue----------- of----------- -----------$43-----------,00-----------0 o-----------n t-----------he -----------dat-----------e o-----------f ----------- th-----------e t-----------ran-----------sfe-----------r.Â-----------  -----------  -----------Cec-----------ile----------- s-----------old----------- th-----------e s-----------toc-----------k f-----------or -----------$40-----------,00-----------0 a----------- mo-----------nth----------- af-----------ter----------- re-----------cei-----------vin-----------g i-----------t.Â----------- I-----------n ----------- ad-----------dit-----------ion----------- -----------Cas-----------per----------- -----------isÂ----------- r-----------equ-----------ire-----------d t-----------o p-----------ay -----------Cec-----------ile----------- $1-----------,50-----------0 a----------- mo-----------nth----------- in----------- al-----------imo-----------ny.-----------
Not Rated(0)