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Payments deductible as alimony?

In the divorce agreement client is required pay mortgage, property taxes, insurance and renovation/maintenance cost of joint property where the ex spouse will reside. Are the payments for renovations and / or maintenance items deductible by client as alimony?   Additionally the divorce decree states that no alimony will be paid until the house is sold. The document does not discuss the inclusion or non-inclusion of the other payments as alimony.

 

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    If it qualifies for alimony, unless the agreement states that it DOES NOT qualify, then it is alimony.

    It is written, it is paid, it ends when the payee dies, they are not members of the same household, it is not disguised child support or property settlement, then it is alimony.

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      Payer can deduct one-half of interest and taxes(assuming he does not own more than one other home(for the interest)). The other half of the payments are considered alimony(which includes mortgage principal and tax escrows). The ex- can deduct her one-half of interest and taxes(paid for her benefit). The recipient has almost a wash, alimony income and Sch A deductions.

      The insurance and maintenance are neither alimony nor deductions.

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        Payments to keep up the property are specifically excluded from alimony in Pub 504.

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          I am confused based upon what I read it would not qualify as alimony but I definitely could be wrong>>>>>>>

           

          Payments not alimony. Not all payments under a divorce or separation instrument are alimony. Alimony does not include:
          Child support,

          Noncash property settlements,

          Payments that are your spouse's part of community income, as explained later under Community Property ,

          Payments to keep up the payer's property, or

          Use of the payer's property.


          Example.

          Under your written separation agreement, your spouse lives rent-free in a home you own and you must pay the mortgage, real estate taxes, insurance, repairs, and utilities for the home. Because you own the home and the debts are yours, your payments for the mortgage, real estate taxes, insurance, and repairs are not alimony. Neither is the value of your spouse's use of the home.

          If they otherwise qualify, you can deduct the payments for utilities as alimony. Your spouse must report them as income. If you itemize deductions, you can deduct the real estate taxes and, if the home is a qualified home, you can also include the interest on the mortgage in figuring your deductible interest. However, if your spouse owned the home, see Example 2 under Payments to a third party , later. If you owned the home jointly with your spouse, see Table 5. For more information on a qualified home and deductible mortgage interest, see Publication 936, Home Mortgage Interest Deduction.

           

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            If the non-resident, sole owner spouse pays the mortgage, etc, it is HIS property, not hers, so he can claim Sch A deductions. If he also pays the utilities, those are really HER expenses that he is paying for her, so they become alimony -- deductible by him, includible by her, and not deductible on Sch A since they are not allowed.

            What if the resident spouse is the owner but the ex- pays the expenses? They are clearly not deductible on Sch A since the payer does not own the house, so they become alimony.

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              If it doesn't specify that as alimony then no it is not deductable as alimony.  The client should be able to deduct the mortgage interest and property taxes on Schedule A though.

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                While he can deduct 1/2 of the mortgage interest and 1/2 of the property taxes unless the divorce decree states that it is alimony or there is a separate maintenamce decree that spells out alimony there is no above the line deduction for alomony

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                  If you go to the IRS website and read publication 504 (the section on alimony) it goes into detail regarding Accountant Mans answer. 

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                    I appreciate all of the answers thus far.  

                    The agreement says there will be no alimony paid, it doesn't say that the mortgage,  real estate taxes and insurance aren't alimony.  I have reviewed pub 504, specifically Table 5 - Expenses for a Jointly Owned Home, and believe we can deduct as alimony portions of the mortgage interest, real estate taxes and property insurance.  I'm unclear about items such as painting, trash removal, garage organization & cleanup expenses along with the costs to renovate the kitchen and bathroom.

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                      Accountant Man - I didn't know that until today.  I did find it in publication 504.  I always thought it had to be listed as alimony in the divorce agreement but I see I was wrong.  Thanks!

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                        Mt Juliet I think it depends on if the house is just his, hers or a jointly owned home in order to determine if it is considered alimony or not.

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                           In this case the house is jointly owned. 

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                            Then you are right about using Table 5 in publication 504 and Accountant Man is correct about the renovations and maintenance items being excluded.

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                              OK I just need to make sure after 42 years ......she always gets everything ....so I may as well stay with her

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                                The second part of my last answer can be titled: "She gets the house, he gets the shaft."

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                                  Now I understand

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                                    TAXOH and Accountant Man---Thank You for teaching me re this I learned a lot.

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                                      I need to thank Accountant Man also.  I was under the wrong assumption until I read his answer and then did some research.  I also learned alot thanks to him.

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                                        YW, all.

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