- 9 - 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 courtPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011