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The allocation of the liability for the 1993 income taxes
between petitioner and Ms. Cologne was based on their relative
incomes for the year. Petitioner has not shown that the
allocation was based on their relative needs, standards of
living, or earning capacities when the taxes would be paid or on
any other factors normally taken into consideration in
determining support. The agreement provided that petitioner
would be reimbursed for Ms. Cologne's smaller share out of the
net proceeds, if any, of the sale of the residence remaining
after other debts were paid. The division of the couple's tax
liabilities is in the nature of a property settlement, rather
than a provision for the future support of Ms. Cologne.
Accordingly, section 4337 of the California Family Code (West
1994) does not operate to terminate these payments at
Ms. Cologne's death, and the requirement of section 71(b)(1)(D)
is not met. Petitioner is not entitled to an alimony deduction
for the payments of his former spouse's 1993 Federal and State
income tax liabilities.
Payment of Utilities for Wisconsin Property
Pursuant to the agreement, petitioner and Ms. Cologne owned
the Wisconsin property as joint tenants with right of
survivorship. Both had the right of use and possession of the
property, and his liability for utility bills would be continued
after her death. While she occupied the property, however, the
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