Regardless of When a Divorce Agreement Is Executed, Alimony Is

question 119

True/False

Regardless of when a divorce agreement is executed, alimony is included in gross income of the recipient and is deductible for AGI by the payer.

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Definitions:

After-Tax Cash Savings

The increase in cash flow that results after all applicable taxes have been deducted from the gross income.

Cost of Capital

The rate of return that a business must earn before generating value, taking into account the cost of funding the business through equity or debt.

Capital Structure

The combination of a corporation's long-term obligations, particular short-term liabilities, common stock, and preferred shares, employed to fund its general activities and expansion.

Net Present Value

A calculation used to determine the value of a future stream of income or expenses discounted back to the present value.