Which of the Following Statements About Divorce Settlements Is True

question 8

Multiple Choice

Which of the following statements about divorce settlements is true?

• A) Property transfers pursuant to divorce have no income tax consequences.
• B) Child support is excluded from the recipient's gross income.
• C) Child support is an above-the-line deduction for the payer.
• D) Statements a and b are true.

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Definitions:

Traditional Branches

The main, long-established divisions or categories within a particular field or profession, often referring to fields like government, education, or science.

Orders

A command or directive given by someone in authority.

Administrative Agencies

Government bodies responsible for implementing and enforcing specific statutes and regulations at the federal, state, or local level.

Interpretive Rules

Interpretive Rules are administrative agency statements that clarify or interpret existing statutes or regulations but do not have the force of law.