Charitable and Divorce Planning

One of the Tax Cuts and Jobs Act’s (the Act’s) revenue raisers was the denial of the above-the-line alimony deduction to the payer of alimony.¹ Beginning in 2019, alimony is neither deductible by the payer nor includible in the gross income of the payee for divorce and separation agreements finalized after Dec. 31, 2018.² Divorce and separation agreements finalized on or before Dec. 31, 2018 will be governed by the longstanding rule of deductibility and