Since a divorce settlement can include alimony and since alimony is a transfer incident to a divorce settlement, is alimony taxable?
"Regardless of the provision of any other code section, a transfer of property incident to a divorce settlement shall be a nontaxable transaction" or something pretty close to it.
C'mon davew128, when there is no debate on the issue, why muddy the waters? Have you submitted all your e-file's already?
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne)