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ed and ann ross were divorced in january 2007 in accordance with the divorce decree 624126

Ed and Ann Ross were divorced in January 2007. In accordance with the divorce decree, Ed transferred the title in their home to Ann in 2007. The home, which had a fair market value of $150,000, was subject to a $50,000 mortgage that had twenty more years to run. Monthly mortgage payments amount to $1,000. Under the terms of settlement, Ed is obligated to make the mortgage payments on the home for the full remaining twenty-year term of the indebtedness, regardless of how long Ann lives. Ed made twelve mortgage payments in 2007. What amount is taxable as alimony in Ann’s 2007 return?

  1. $0
  2. $ 12,000
  3. $100,000
  4. $112,000

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