James Stewart and Mary Ann Lanphere - Page 6

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                 In the instant case, James is not seeking to have the                                   
            Judgment entered nunc pro tunc.  The Judgment specifically states                             
            that it is:                                                                                   
                        ORDERED, ADJUDGED AND DECREED, that * * *                                         
                  [Virginia] be and hereby is granted Judgment dissolving                                 
                  the marriage relation heretofore existing between the                                   
            plaintiff, VIRGINIA * * * and the defendant, JAMES * * *.                                     
            The oral stipulation of December 11, 1984, was merged into the                                
            Judgment, which was signed by the Chautauqua County Supreme Court                             
            justice on April 1, 1985, and entered on April 3, 1985.  The                                  
            payments in question were made pursuant to that Judgment, as                                  
            modified on December 17, 1985.  Thus, the pertinent divorce                                   
            instrument in this case was executed after December 31, 1984.                                 
            Consequently, sections 71 and 215, as amended by the Tax Reform                               
            Act of 1984, govern the payments in issue.                                                    
                  Section 215(a) allows an individual, in computing adjusted                              
            gross income, to deduct amounts paid during the year if such                                  
            amounts are includable in the gross income of the recipient under                             
            section 71(a).  Section 71(c)(1) specifically excludes from the                               
            recipient's gross income any "part of any payment which the terms                             
            of the * * * instrument fix (in terms of an amount of money or a                              
            part of the payment) as a sum which is payable for the support of                             
            children of the payor spouse."  Thus, a sum fixed by the                                      
            instrument or agreement as payable for child support is not                                   
            deductible by the payor as alimony.  Sec. 71(c)(1); sec. 1.71-                                







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