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How much gain or loss does Casper recognize

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Problem - Casper and Cecile divorced in 2018. As part of the divorce settlement, 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?

Required -

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?

Reference no: EM132655353

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