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Bill and Jane Jones were divorced on January 1, 2018. They have no children. In accordance with the divorce decree, Bill transferred the title of their house over to Jane. The home had a fair market value
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34 votes
34 votes
Bill and Jane Jones were divorced on January 1, 2018. They have no children. In accordance with the divorce decree, Bill transferred the title of their house over to Jane. The home had a fair market value of $250,000 and was subject to a $100,000 mortgage. Under the divorce agreement, Bill is to make $1,000 monthly mortgage payments on the home for the remainder of the mortgage. In the current year, Bill made 12 mortgage payments. What amount is taxable to Jane in the current year

User Kauppi
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1 Answer

17 votes
17 votes

Answer: $0

Step-by-step explanation:

Based on the information given in the question, the amount that is taxable to Jane in the current year will be $0.

We should note that there'll be no deduction made for the payments made since the settlement with regards to the divorce agas already provided for the payment. The payments in this case aren't included in the gross income of the person that'll collect the payment.

Therefore, the answer is $0.

User Guy Moreillon
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