Final answer:
Qualified alimony payments pursuant to a 2018 divorce instrument include mortgage payments for property used by the payee spouse, rent payments for the payee spouse, and tuition payments for the payee spouse, as long as it is specified in the divorce decree. However, life insurance for the payee spouse and payments that continue after the payee's death are not considered alimony.
Step-by-step explanation:
Under the Internal Revenue Code, the following items would qualify as alimony payments if made pursuant to a divorce instrument in 2018:
- Payment of mortgage payments for property owned by the payor spouse but used by the payee spouse can qualify as alimony if the payments are for the use of the payee and if specified in the divorce decree.
- Payment of the payee spouse's rent by the payor spouse generally qualifies as alimony, as this is a payment made to a third party on behalf of the payee that allows them to maintain their living situation.
- Payment of payee spouse's tuition to state college to become a CFP per the divorce decree may qualify as alimony if it is made under the divorce or separation agreement.
However, life insurance on the payee spouse does not qualify as alimony. Also, payments which continue beyond the payee spouse's death with the children as named beneficiaries would not be considered alimony.