Senate Bill Retains Alimony Tax Deduction

In a previous post, we noted how the House recently passed a version of a tax reform bill which, if enacted into law, would eliminate the tax deduction for alimony payments in divorces and separation agreements executed after December 31, 2017. On November 9, 2017, however, the Senate responded by filing its own version of a tax reform bill. The Senate bill rejected the House’s proposal to eliminate the alimony tax deduction and would leave the current law regarding the deductibility of alimony payments intact. Since there are widespread consequences flowing from the potential loss in the deductibility for alimony warrants, the tax reform debate in Congress warrants continued and close monitoring.