Is alimony counted as income?

Is alimony counted as income?

Alimony is still considered taxable income for the recipient, and it’s still tax deductible for the payer under the same rules. The new rules also apply if a decree or agreement is modified after Decem and the modification states that the repeal of the alimony deduction applies to the modification.

Is divorce settlement money considered income?

filing for divorce online

Maintenance payments made by a spouse or that are attributable to a payment made by a spouse is exempt income of the receiving spouse. If a spouse receives income from an existing trust as maintenance payments instead of directly from the other spouse, tax will be payable on that income.

Who pays capital gains tax after divorce?

CGT is only payable upon the trigger of a CGT event, such as a sale or transfer of the asset. An order from the Family Court or a Binding Financial Agreement provides CGT rollover relief so CGT is not payable when the property is transferred to one party by way of final settlement.