Question

Charles and Camilla got divorced in 2018. Under the terms of the decree Charles pays Camilla $50,000 in cash in each of the next five years (or until Camilla's death or remarriage). In addition, Charles transferred a castle worth $2,000,000 to Camilla in 2018 and will pay $12,000 per year to support their son, Clyde, until he turns 19 years old. What amount (if any) is included in Camilla's gross income in 2019?

Answer 1

The amount that is included in Camilla's gross income in 2019 is $50,000.

Step-by-step explanation:

Property settlement and child support are not included in gross income , but alimony payment(cash) are included.

Therefore, The amount that is included in Camilla's gross income in 2019 is $50,000.