Victor and Claire Anet, Residents of a Separate Property State

question 10

Multiple Choice

Victor and Claire Anet, residents of a separate property state, were divorced in February 2012. Specific requirements of the divorce decree and Mr. Anet's performance of those requirements follow: Transfer title in their personal residence to Claire as part of a lump-sum property settlement. On the day of the transfer, Victor's basis in the house was $38,000, the fair market value was $42,000, and the property was subject to a mortgage of $20,000.
Make the mortgage payments on the 20-year mortgage. He paid $2,500 from March 1, 2012, through December 31, 2012.
Repay to Claire a $3,000 loan, which he did on April 1, 2012.
Pay Claire $700 per month of which $200 is designated as child support. He made ten such payments in 2012. Assuming that Claire has no other income, her 2012 gross income should be:

• A) $7,500
• B) $9,500
• C) $12,500
• D) $16,000

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