Deborah Lynn Israel - Page 5

                                        - 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 which                




Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011