just wanted to add on a key point to the above, the payments made have to end upon the death of the recipient to be considered alimony. if payments are made and continue whether recipient is dead or alive, it is not considered alimony. i came across this mcq last night while studying

#2 monetary gift to employees

"In the case of cash or other property received by an employee from his or her employer, Congress has eliminated any ambiguity. Transfers from an employer to an employee cannot be excluded as gift. However, victims of a qualified disaster who are reimbursed by their employers for living expenses, funeral expenses, and property damage can exclude the payments from gross income under Sec 139."

Tax Effect on Imputed Interest:

Corp to shareholder-

1. Lender claims interest income on return while borrower deducts interest expense.

2. Lender claims imputed interest as dividend paid while borrower claims dividend income.

AMT EXEMPTION

MFS exemption is $37,225

Everything else is correct

"SMALL BUSINESS STOCK

The general rule is that shareholders receive cap gain or loss treatment upon the sale or exchange of stock. However, it is possible to receive an ordinary loss deduction if the loss is sustained on small business stock (sec 1244 stock). This loss could arise from a sale of the stock or from the stock becoming worthless. Only individuals who acquired the stock from the corp are eligible to receive ordinary loss treatment under Sec. 1244. The ordinary loss treatment is limited to $50,000 ($100,000 for MFS) per year. Losses on Sec 1244 stock in excess of the statutory limits receive cap loss treatment..."

Addendum to small business stock:

"When computing taxable income, noncorporate taxpayers may exclude up to 100% of gain realized on the sale or exchange of qualified small business stock acquired after 9/27/10, and held more than five years. The exclusion percentage drops to 75% for stock acquired after 2/17/09, and before 9/28/10; and to 50% for stock acquired before 2/18/09. Generally, 7% of the exclusion is a tax preference item for AMT. However stock sold between 9/27/10, and 1/1/12, is excluded from tax preference treatment."