- 5 - of Article III, paragraph b, of the separation agreement, Dr. Israel paid petitioner's rent totaling $13,808 for the apartment she and their son occupied at 167 East 82nd Street in New York City. The only issue for decision is whether the rental payments of $13,808 made by Dr. Israel constitute taxable alimony. Petitioner contends that because of the contingencies in the separation agreement, the rental payments constitute a property settlement or child support. Respondent contends that the rental payments constitute alimony. Petitioner bears the burden of proving that respondent's determination is incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933). Section 71(a) provides that gross income includes amounts received as alimony or separate maintenance payments. In general, an alimony or separate maintenance payment is any cash payment received by the payee spouse or made to a third party "on behalf of" the payee spouse that meets the four requirements of section 71(b)(1). Section 71(b)(1) provides: (1) In general.--The term "alimony or separate maintenance payment" means any payment in cash if -- (A) such payment is received by (or on behalf of) a spouse under a divorce or separation instrument, (B) the divorce or separation instrument does not designate such payment as a payment whichPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011