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which is payable for the support of children of the
payor spouse.
(2) Treatment of certain reductions related to
contingencies involving child.--For purposes of
paragraph (1), if any amount specified in the
instrument will be reduced--
(A) on the happening of a contingency
specified in the instrument relating to a child
(such as attaining a specified age, marrying,
dying, leaving school, or a similar
contingency), or
(B) at a time which can clearly be associated
with a contingency of a kind specified in
subparagraph (A),
an amount equal to the amount of such reduction will be
treated as an amount fixed as payable for the support
of children of the payor spouse.
The Separation Agreement provides for a reduction of the
unallocated periodic alimony and support payments by $2,000 each
for Scotty and George on a certain date after each of their
graduations from high school, and that provision is clearly a
contingency related to those children. See Hammond v.
Commissioner, T.C. Memo. 1998-53 (payments determined to be child
support when the payments terminated on the taxpayer’s child’s
18th birthday); Israel v. Commissioner, T.C. Memo. 1995-500
(payment determined to be child support when contingent on child
residing with recipient spouse).
Petitioner asserts that it is inequitable to treat the
payments as child support because it was intended by the parties
that he would be able to deduct the payments in full. This may
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Last modified: May 25, 2011