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(D) there is no liability to
make any such payment for any
period after the death of the payee
spouse and there is no liability to
make any payment (in cash or
property) as a substitute for such
payments after the death of the
payee spouse.
* * * * * * *
(e) Exception for Joint Returns.--This section and
section 215 shall not apply if the spouses make a joint
return with each other.
The educational expenses paid by petitioner's former husband
to petitioner and to Oglethorpe University (tuition payments)
satisfy all of the requirements of section 71 for inclusion of
the tuition payments in gross income: (1) The tuition payments
were made by check which is a cash equivalent, see sec. 1.71-
1(T)(b), Temporary Income Tax Regs., Q&A-5, 49 Fed. Reg. 34455
(Aug. 31, 1984); (2) the tuition payments were received by
petitioner, or on her behalf, pursuant to paragraph 5.01 of the
settlement agreement, that was incorporated into the divorce
decree, see sec. 1.71-1(T)(b), Temporary Income Tax Regs., Q&A-6,
49 Fed. Reg. 34455 (Aug. 31, 1984); (3) the settlement agreement
does not designate the tuition payments as amounts which are not
includable in petitioner's gross income for federal tax purposes;
(4) at the time the tuition payments were made, petitioner and
her former husband lived in separate households; (5) the tuition
payments terminate on the death of petitioner because they are
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