For an Alimony Payment to Be Deductible, There Must Be

question 20

Short Answer

For an alimony payment to be deductible, there must be no obligation to make the payment
(in cash or other property) after the of the recipient.

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Definitions:

Real Actions

Legal procedures taken to determine the title to property, as opposed to personal claims against a person.

Accounting Actions

Activities or tasks performed by accountants or financial officers that relate to the process of recording, summarizing, and reporting financial transactions of a business.

Earnings Targets

Pre-determined goals for an organization's financial performance, often used to motivate and measure the effectiveness of management.

Debt Covenants

Agreements or clauses within a debt contract that impose certain conditions or restrictions on the borrowing party, aimed at protecting the lender.