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determine whether, although unstated, an interest factor was
involved in a payment, or a series of installment payments, in
connection with a transaction otherwise subject to section 1041.
This is not such a case. Here the parties have stipulated that a
portion of each payment constituted interest.
We have considered petitioner's other arguments and find
them unpersuasive. Although we agree with petitioner's argument
that the interest payments do not constitute alimony under
section 71, and therefore, are not includable in income as such,
we disagree with her contention that unless the payments
constitute alimony they need not be included in her income.
Nothing in section 71 suggests that a payment from one spouse to
another constitutes income only if the payment satisfies the
definition of alimony contained in that section. In support of
her argument on this point petitioner relies upon Fox v.
Commissioner, 510 F.2d 1330 (3d Cir. 1975); Gammill v.
Commissioner, 73 T.C. 921 (1980), affd. 710 F.2d 607 (10th Cir.
1982); and McCormick v. Commissioner, T.C. Memo. 1987-418. Each
of those cases involves attempts by the taxpayer to deduct, as
imputed interest under section 483, portions of installment
payments to a former spouse that were made pursuant to a divorce
settlement that did not call for interest payments. In those
cases, it was determined that section 483 did not apply to
property settlements made incident to divorce, and the taxpayers
were not entitled to deductions for interest.
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