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29.
The parties agree that the issue of Attorney fees is
reserved at the time of the signing of this Agreement and
shall be submitted to the Trial Judge. This issue shall be
considered by the Trial Judge in the manner the Judge deems
appropriate, either by Brief and/or Oral Argument.
The agreement was executed on May 21, 1993, and the final
judgment was entered June 29, 1993. By order of the Superior
Court for the State of Georgia filed June 29, 1993, petitioner
was ordered to pay the wife's attorney's fees in the amount of
$25,000. On July 1, 1993, the wife's attorneys submitted a
statement to petitioner for $25,000, which petitioner paid.
On his 1993 Federal income tax return, petitioner deducted
the $25,000 as alimony. Petitioner's return was prepared by a
certified public accountant. Respondent disallowed the
deduction.
Section 215(a) provides that there "shall be allowed as a
deduction an amount equal to the alimony or separate maintenance
payments paid". Alimony or separate maintenance payments are
defined as "any alimony or separate maintenance payment (as
defined in section 71(b)) which is includible in the gross income
of the recipient under section 71." Sec. 215(b). Section 71(b)
provides, inter alia:
(1) In general.--The term "alimony or separate
maintenance payment" means any payment in cash if--
(A) such payment is received by (or on behalf of)
a spouse under a divorce or separation instrument,
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