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OPINION
Gross income includes payments of alimony or separate
maintenance. See sec. 71(a). Section 71(b)(1) defines the term
"alimony or separate maintenance payment":
(1) In general. The term "alimony or separate
maintenance payment" means 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 spouse are not members of the
same household at the time such payment is made,
and
(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.
Positions of the Parties
Respondent's notice of deficiency determined that petitioner
received alimony or support payments of $15,499 in 1994 and
$9,611 in 1995. The parties have stipulated, however, that the
payments actually made by Raymond Lawton to petitioner totaled
$12,900 in 1994 and $6,950 in 1995. Respondent argues that the
payments constitute taxable income because they are payments of
alimony or separate maintenance as described in section 71(b)(1).
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Last modified: May 25, 2011