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B. Background
Alimony is taxable to the recipient and is deductible by
the payor. Secs. 71(a), 215(a). Alimony payments are not child
support payments. Sec. 71(c). Child support payments are
neither includable in income under section 71 nor deductible
under section 215. Child support is that part of a payment which
the divorce instrument fixes as payable for the support of the
children of the payor spouse. Sec. 71(c)(1). An amount is
treated as fixed under section 71(c)(1) if it will be reduced “on
the happening of a contingency specified in the [divorce]
instrument relating to a child (such as attaining a specified
age, marrying, dying, leaving school, or a similar contingency),”
sec. 71(c)(2)(A), or “at a time which can clearly be associated
with a contingency of a kind specified in subparagraph (A),” sec.
71(c)(2)(B).
The parties agree that this case should be decided by
applying section 72(c)(2)(B) and section 1.71-1T(c), Q&A-18,
Temporary Income Tax Regs., 49 Fed. Reg. 34457 (Aug. 31, 1984).2
2 Sec. 1.71-1T(c), Q&A-18, Temporary Income Tax Regs., 49
Fed. Reg. 34457 (Aug. 31, 1984), provides:
Q-18. When will a payment be treated as to be
reduced at a time which can clearly be associated with
the happening of a contingency relating to a child of
the payor?
A-18. There are two situations, described below,
(continued...)
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