Edward J. Richardson - Page 9

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               In order for Edward's payments made in 1989 and 1990                    
          pursuant to the orders of the circuit court to be deductible by              
          him and includable in Irene's income, they would have to qualify             
          as "alimony or separate maintenance payments."  Secs. 71(a),                 
          215(a).  With respect to a divorce or separation instrument                  
          executed after 1984, an alimony or separate maintenance payment              
          is defined in section 71(b)(1) as 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 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 such payments after the                   
               death of the payee spouse.                                              
          Furthermore, the payments are not deductible by the payor spouse             
          and are not taxable to the payee spouse if the spouses filed a               
          joint return.  Sec. 71(e).                                                   
               The October 3, 1989, circuit court opinion is a divorce or              
          separation instrument for purposes of section 71(b)(1).  Sec.                
          71(b)(2)(A), (C).  Edward made payments in 1989 and 1990 pursuant            
          to the circuit court's Memorandum Opinion dated October 3, 1989,             
          and its modifying Order of December 15, 1989.  The circuit court             




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