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obligations in separation agreement were to be performed
notwithstanding death of husband).
D. Conclusion
Petitioner has failed to prove that the obligation to make
the $50,000 payment would have ended had Marilyn died before the
payment. Therefore, petitioner has failed to prove that the
$50,000 payment was alimony within the meaning of sections 71(b)
and 215(b). Petitioner is not entitled to a deduction for the
$50,000 payment under section 215(a). Respondent’s determination
of a deficiency is sustained to the extent respondent denied
petitioner’s deduction of the $50,000 payment.
III. Business-Related Legal Fees
A. Introduction
On his 1993 Federal income tax return, petitioner claimed
$58,581 as a deduction for business-related legal fees. The
amount of the deduction remaining in issue is $48,651.75.
Petitioner now claims that $25,000 of that amount, which was paid
to Charles P. Gallo (the Gallo payment), petitioner’s wife’s
attorney in the matrimonial action, is deductible as the payment
of alimony. The remaining $23,651.75 was paid to petitioner’s
attorney Anthony M. Bentley (the Bentley payment), and petitioner
claims it was paid for tax planning with respect to the divorce
and for business-related legal advice.
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Last modified: May 25, 2011