alimony payments

[krav]

A client is ordered to pay $600 per month in maintenance (all the IRS requirements are met in the order), but the ex has to buy him out of the house, so the alimony amount is reduced to $400 a month as the $200 is considered her buyout of his half of the equity in the home. What is the deductible alimony? My first thought had been it should only be the $400, but since the other $200 is him being bought out of a house, I guess the ex should pay taxes on that portion too, correct?

[Burke]

How does the divorce decree handle this? It should specifically address the amount to be considered alimony. If it directs $200 per month as settlement for her 1/2 of the house, then that is not alimony, IMO. Get a copy of that document.

[krav]

Thanks - I did just that. In the end the wording of the document states that only the smaller part is alimony.

[taxea]

Also if stated as maintenance it is not alimony.