Gordon B. Cologne - Page 7




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               The parties have stipulated that an alimony deduction is               
          allowed for the following payments totaling $36,465:  Spousal               
          support of $25,950, life insurance premiums of $1,920, waste                
          management of $1,804, and January and February pension payments             
          of $6,791.  Remaining in dispute are the payments of                        
          Ms. Cologne's half of the 1993 Federal and State income taxes and           
          payment of the utilities for the Wisconsin property.                        
          Discussion                                                                  
               Section 215 allows as a deduction an amount equal to the               
          alimony or separate maintenance payments paid during the year.              
          For purposes of section 215, the term "alimony or separate                  
          maintenance payment" means any alimony or separate maintenance              
          payment (as defined in section 71(b)) that is includable in the             
          gross income of the recipient under section 71.  See sec. 215(b).           
          Section 71(a) provides that gross income generally includes                 
          amounts received as alimony or separate maintenance payments.               
          Section 71(b)(1) defines alimony or separate maintenance payment            
          as any payment in cash if--                                                 
                    (A) such payment is received by (or on behalf of)                 
               a spouse under a divorce or separation instrument,                     
                    (B) the divorce or separation instrument does not                 
               designate such payment as a payment which is not                       
               includible in gross income under this section and not                  
               allowable as a deduction under section 215,                            
                    (C) in the case of an individual legally separated                
               from his spouse under a decree of divorce or of                        
               separate maintenance, the payee spouse and the payor                   





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