112 T.C. No. 21
UNITED STATES TAX COURT
ESTATE OF MONTE H. GOLDMAN, DECEASED, CAROLE SCHUTTER, f.k.a
CAROLE GOLDMAN, PERSONAL REPRESENTATIVE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 183-97. Filed June 1, 1999.
On Nov. 12, 1985, H and W executed a Property
Settlement Agreement (the agreement) in connection with
their divorce; the agreement was approved by the divorce
court. Par. 2 of the agreement provides for a division
of marital property. Par. 2.2.9 of the agreement
provides that "In furtherance of the equitable division
of property" H shall pay W $20,000 a month for 240
months. The monthly payments terminate at W's death.
Par. 6.5 of the agreement provides that all transfers of
property are to be subject to the provisions of sec.
1041, I.R.C., and shall be reported on H and W's income
tax returns "as a non-taxable event". The agreement
further provides that both W and H waive spousal support.
H received an opinion letter from a law firm that
the $20,000 monthly payments were deductible as alimony.
On H's 1992, 1993, and 1994 Federal income tax returns,
the payments (totaling $240,000 per year) were
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