The payments must be in cash. The agreement or court order must not say the payments are not alimony. The spouses must be living apart at the time the payments are made. The payments must cease upon the death of the payee. In effect, the rules allow the spouses to determine by contract the tax consequence of payments between former spouses.
Alimony is includible in the gross income of the recipient.
Receives all property accumulated during marriage. NO Both parties would benefit from alimony treatment. W pays less Child Support Payments To a custodial spouse are not deductible by the payer because the payments merely satisfy a legal obligation that would exist regardless of whether the spouses were divorced. Likewise, such payments are not included in the gross income of the custodial spouse. Gift Loans Results in income to the donor and interest expense to donee.