What amount can kate deduct

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Reference no: EM133909343

Problem

Sam and Kate received their final divorce decree two years prior to September 30 of the current tax year. The decree states that Sam is required to make $1,500 alimony payments to Kate on the first day of each month. For the previous two years, he always made timely payments, which he deducted and Kate reported as income. In the current tax year, income from Sam's real estate business dropped significantly, and he made no alimony payments. Get the instant assignment help. For the current tax year, what amount, if any, must Sam include in his income as recaptured alimony, and what amount can Kate deduct?

Reference no: EM133909343

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