- 10 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011