Larick A. Hill and Fawni Little, A.K.A. Fawni Hill - Page 12

                                       - 12 -                                         

          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...)           





Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011