mardi 28 juillet 2015

Federal Taxes: Divorce Payment Deductible

I was divorced about 8 yrs ago. In the agreement, I am to give my ex a large sum of money when my parent was to die, leaving me an inheritance. It will be paid by check in a lump sum. There is no mention of tax consequences, therefore I believe it meets all the qualifications to be deducted as alimony according to the rule of the IRS.. except maybe one. The IRS says that payments cannot be considered alimony if the obligation continues past the ex spouse's death.

The agreement says I pay a lump sum to her within 30 days of my receiving it. That part of the agreement says nothing more.

At the end of the entire agreement, is the following. Does this mean the obligation continues beyond her death making it not qualify as alimony for a federal tax deduction?

"Estate Obligations" The Agreement shall bin the parties hereto, their heirs, executors, administrators, representatives and assigns and shall inure to the benefit of their respective heirs, executors, administrators, representatives and assigns."

The payment meets all other requirements.

Thanks

MyKidsDad


Federal Taxes: Divorce Payment Deductible

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