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OPINION
Section 215 allows a deduction for alimony payments which
meet the definition of section 71(b).3 Yoakum v. Commissioner,
82 T.C. 128, 134 (1984). The parties do not dispute that the
requirements under section 71(b)(1)(A) through (C) have been met.
The issue, therefore, is whether under the settlement agreement
the payments meet the requirement of section 71(b)(1)(D).
Section 71(b)(1)(D) provides that, for payments to be
considered alimony, there must be no liability to make any
payment for any period after the death of the payee spouse and no
liability to make any payment (in cash or property) as a
substitute for such payments after the death of the payee spouse.
Section 8 of the settlement agreement provides that
3 SEC. 71. ALIMONY AND SEPARATE MAINTENANCE PAYMENTS.
* * * * * * *
(b) Alimony or Separate Maintenance Payments Defined.--For
purposes of this section--
(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 separationinstrument,
(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,
maintenance, the payee spouse and the payor spouse are not members of the same
household at the time such payment is made, and
liability to make any payment (in cash or property) as a substitute for such
payments after the death of the payee spouse.
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Last modified: May 25, 2011