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Ronald Murphy would pay $4,000 a month to Diane Murphy as family
support.
With respect to Diane Murphy’s case only, Ronald Murphy paid
no more than $29,800 and $28,800 to Diane Murphy in 1990 and
1991, respectively.
Ronald Murphy made Federal income tax returns for 1990 and
1991 on the basis of a calendar year. He made those returns on
Forms 1040, U.S. Individual Income Tax Return, and, for each
year, he claimed deductions for alimony paid to Diane Murphy.
For 1990, he claimed an alimony deduction of $46,000; for 1991,
he claimed an alimony deduction of $48,500.
Diane Murphy also made Federal income tax returns for 1990
and 1991 on Forms 1040, on the basis of a calendar year. Diane
Murphy reported no income related to alimony for either year.
Petitioners have four children, three of whom lived with
Diane Murphy during 1990 and 1991.
OPINION
I. Introduction
We must determine whether certain payments made on account
of the dissolution of the marriage of petitioners (Ronald Murphy
and Diane Murphy) are alimony for Federal income tax purposes.
If such payments (the marital payments) are alimony, then they
are deductible by Ronald Murphy and includable in gross income by
Diane Murphy. If the marital payments are not alimony, then they
are not deductible by Ronald Murphy and are not includable in
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