Question

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

1) The payments must be in cash.
2) The payments must cease upon the death of the payee.
3) The payments must extend over at least three years.
4) The payor and payee must not live in the same household at the time of the payments.
5) All of these are requirements for an alimony deduction.

Answer 1

The requirement that 'The payments must extend over at least three years' is not necessary for an alimony deduction. Alimony deductions require payments in cash that cease upon the recipient's death and are made when the payor and payee are not in the same household.

Step-by-step explanation:

The third option, 'The payments must extend over at least three years,' is not a requirement for an alimony deduction. For alimony payments to be deductible:

1. The payments must be in cash (including checks or money orders).
2. The payments must cease upon the death of the payee.
3. The payor and payee must not be members of the same household when the payments are made if legally separated under a decree of divorce or separate maintenance.

Additionally, the payments must be made under a divorce or separation instrument, and the instrument must not designate the payment as something other than alimony.