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Agreement, declaring these support payments deductible by Mr.
Rangos and taxable to petitioner. This factor favors treating the
automobile payments as part of a property settlement.
Upon analyzing the seven aforementioned factors, we conclude
that Mr. Rangos and petitioner intended the automobile payments to
be part of a property settlement. See Kohn v. Kohn, 364 A.2d 350,
353 (Pa. Super. Ct. 1976). In reaching our conclusion, we found
that petitioner credibly testified to the circumstances surrounding
execution of the Agreement, its intent, and subsequent performance.
Although the language of Paragraph 12 does not provide for the
tax treatment of the automobile payments, elsewhere the Agreement
specifically declares the tax treatment of certain items: (1)
Paragraph 8 states that Mr. Rangos is entitled to the dependency
exemptions for the minor children; (2) Paragraph 11 states that the
payments made pursuant to this paragraph are to be includable in
petitioner's income and deductible as an expense by Mr. Rangos; and
(3) Paragraph 16 refers to deficiencies and refunds regarding
petitioner and Mr. Rangos' 1971 and 1972 income tax returns.
We believe that had petitioner and Mr. Rangos intended
Paragraph 12 to involve taxable alimony, they would have said so.
Moreover, Paragraph 12 states that "The use of said motor vehicle
shall be at no expense to the Wife except the cost of the
operation, maintenance and repair." (Emphasis added.) This
sentence, along with petitioner's credible testimony, supports our
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