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is not includible in gross income under this
section and not allowable as a deduction under
section 215,
(C) in the case of an individual legally
separated from his spouse under a decree of
divorce or of separate maintenance, the payee
spouse and the payor spouse are not members of the
same household at the time such payment is made,
and
(D) there is no liability to make any such
payment for any period after the death of the
payee spouse and there is no liability to make any
payment (in cash or property) as a substitute for
the payments after the death of the payee spouse.
The regulations provide that, assuming the four requirements
are satisfied, a payment of cash by the payor spouse to a third
party under the terms of a divorce or separation instrument will
qualify as a payment of cash which is received "on behalf of" a
spouse. Moreover, "cash payments of rent * * * made under the
terms of the divorce or separation instrument will qualify as
alimony or separate maintenance payments." Sec. 1.71-1T(b),
Q&A-6, Temporary Income Tax Regs., 49 Fed. Reg. 34455 (Aug. 31,
1984).
However, section 71(c)(2) states:
* * * 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 age, marrying, dying, leaving school, or
a similar contingency) * * *
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.
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Last modified: May 25, 2011