Which of the Following Is Not a Requirement for an Alimony

question 92

Multiple Choice

Which of the following is not a requirement for an alimony deduction?

• A)The payments must be in cash.
• B)The payments must cease upon the death of the payee.
• C)The payments must extend over at least three years.
• D)The payor and payee must not live in the same household at the time of the payments.
• E)All of these are requirements for an alimony deduction.

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Definitions:

Trading Securities Portfolio

A collection of securities bought and held primarily for sale in the short term to generate income on short-term price differences.

Fair Value

The estimated price at which an asset can be bought or sold in an orderly transaction between market participants at the valuation date.

Unrealized Gain

An increase in the value of an asset that has not been sold, thus not yet generating actual profit.

Readily Marketable

Items or securities that are readily marketable can be quickly sold in the market without significantly affecting their price.