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distinguishes support from property
distribution. The former is meant to provide
sustenance support, while the latter involves
the readjustment of the parties property
rights. St Clair v. St. Clair (1983), 9 Ohio
App. 3d 195; Wolfe, supra. Other criteria
which courts have employed in making this
distinction are whether the award is for a
definite sum and if it is not subject to
contingencies. Vaught v. Vaught (1981), 2
Ohio App. 3d 264; Bean v. Bean (1983), 14
Ohio App. 3d 358. If the periodic payments
have these characteristics, they are
considered to be part of the property
distribution. Id. at 5.
In each year in issue, in accordance with the terms of the
divorce decree, petitioner paid his former spouse $19,200 ($1,600
per month x 12 months). Alimony deductions with respect to these
amounts were claimed on petitioners' Federal income tax returns
for those years. In the notice of deficiency, respondent
disallowed the alimony deductions upon the ground that "the
payments represent a property settlement."
OPINION
In general, an individual is allowed to deduct amounts paid
as alimony during the taxable year to the individual's spouse, or
former spouse. Sec. 215. A payment constitutes alimony within
the meaning of section 215 if the payment is made in cash
(including checks and money orders payable on demand, sec. 1.71-
1T(a), Income Tax Regs., 49 Fed. Reg. 34455(Aug. 9, 1989)), and
(1) such payment is received by (or on behalf of) a spouse under
a divorce or separation instrument; (2) the divorce or separation
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