Irv C. Jaffe - Page 13




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               The Court finds it unnecessary to pass upon the requisites             
          of section 71(b)(1)(C) and (D) because no questions were raised             
          by the parties as to those provisions.  It is the Court's                   
          holding, therefore, that one-half of the $18,500 withdrawn by Ms.           
          Jaffe from the Vanguard account during 1994 constituted alimony             
          under section 71(a), and, therefore, such amount is includable in           
          her gross income for 1994.  Correspondingly, that same amount is            
          deductible by Mr. Jaffe under section 215(a).                               
          The Dividend Income Issue.                                                  
               The dividend income at issue arises from the aforementioned            
          Vanguard Account.  The dividend income earned by the Vanguard               
          Account from January 1, 1994, through the close of 1994 totaled             
          $15,543.  The Vanguard Group issued a Form 1099-DIV (Form 1099)             
          to "Nancy Akbari and Susan Gantman, Escrow Agents, Irv C. Jaffe             
          and Arlene Jaffe", for 1994, reporting $15,543.37 in ordinary               
          dividends earned on the Vanguard Account for 1994.  The Form 1099           
          referenced Mr. Jaffe's taxpayer identification number.  Neither             
          Mr. Jaffe nor Ms. Jaffe reported this income on their respective            
          Federal income tax returns for 1994.  Neither petitioner disputes           
          that the Vanguard Account earned $15,543 in dividend income                 
          during 1994.                                                                
               Section 61(a) provides that gross income includes "all                 
          income from whatever source derived," unless otherwise provided.            
          More specifically, section 61(a)(7) provides that dividends are             





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