A couple named Harriet and Walter were divorced in 2015. During their marriage they owned...
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A couple named Harriet and Walter were divorced in 2015. During their marriage they owned a house together. Harriet continued to live in the house because of the poor state of the housing market in the town in which they live. At the end of 2015, Harriet and Walter decided to continue living in that same house together (not as a couple, just friends) until they can sell the house for a reasonable amount. Walter moved back in and occupied one side of the house and Harriet continued to live in the other side. They continued to live together in this manner for the entire year in 2016.
The terms of the divorce require Walter to pay Harriet $60,000 per year in alimony, which he paid as required.
Question: What is the impact of this $60,000 payment on Walters tax return for his 2016 F0rm 1040?
To answer this question, use the Internal Revenue Code. You may refer to a textbook but you may not base the answer on the textbook you must reference the IRC section. What keywords did you use in your search to derive this answer?
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