- 5 -
Discussion
Gross income includes amounts received as alimony. See
secs. 71(a), 61(a)(8). Amounts includable as alimony in a payee
spouse's gross income are deductible to the payor spouse. See
secs. 71, 215. There is no dispute among the parties on these
points. Linda and Ray, of course, disagree as to the
characterization of the payments for Federal income tax purposes.
Respondent now takes the position that the payments fit within
the definition of alimony.
The definition of alimony for Federal income tax purposes is
contained in section 71(b)(1). A payment constitutes alimony
within the meaning of that section if the payment is made in cash
(including checks and money orders payable on demand, see sec.
1.71-1T(a), Temporary Income Tax Regs., 49 Fed. Reg. 34455 (Aug.
31, 1984)), and (1) such payment is received by (or on behalf of)
a spouse under a divorce or separation instrument; (2) the
divorce or separation instrument does not designate such payment
as a payment that is not includable in the payee's gross income
under section 71 and is not allowable as a deduction to the payor
under section 215; (3) if the individual and the spouse are
legally separated, they are not members of the same household;
and (4) the payor has no liability to make any such payment for
any period after the death of the payee. See secs. 71(b),
215(b). The parties agree that the payments satisfy all but the
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011