156k views
5 votes
Bob must pay a former wife $5,000 a month... How much may Bob deduct each month for the payments he makes to his former wife?

a. $5,000 per month
b. $3,000 per month
c. $2,000 per month
d. $0 per month

1 Answer

5 votes

Final answer:

The deductibility of alimony payments, such as the $5,000 per month Bob pays his former wife, depends on specific tax laws that can vary and change over time.

Option A.

Step-by-step explanation:

The answer to the question regarding how much Bob can deduct for the payments he makes to his former wife is contingent upon the tax laws in place at the time of the payments.

Since tax laws can vary greatly and are subject to change, they determine whether alimony payments can be deducted for income tax purposes.

Without additional context regarding the current tax laws and provisions specific to alimony payments in Bob's jurisdiction, it is not possible to provide a definitive answer from the options given.

Consequently, while this question may seem to be rooted in mathematics, it is actually a question related to tax law, a component of business studies.

User Brett East
by
7.9k points