- 6 -
Former section 71(a)(1) provided:
If a wife is divorced or legally separated from her
husband under a decree of divorce * * *, the wife’s
gross income includes periodic payments * * * received
after such decree in discharge of * * * a legal
obligation which, because of the marital or family
relationship, is imposed on or incurred by the husband
under the decree or under a written instrument incident
to such divorce or separation.
Section 215 generally allows a husband a deduction for payments
made to his wife which are includable in his wife’s gross income
under section 71.
To qualify as alimony under the applicable version of
section 71(a)(1), the payments must be (1) imposed or incurred by
the husband under a decree of divorce or separation or a written
instrument incident to such divorce or separation, (2) the
payments must be made in discharge of a legal obligation based on
the marital or family relation, and (3) the payments must qualify
as periodic payments.
Mr. Lane’s premium payments were periodic and pursuant to
the support decree and modified decree. Life insurance premiums
qualify as payments discharging an imposed obligation within
section 71(a) when (1) the former wife is named as the
beneficiary and (2) she is the owner of the policy with the
former husband retaining no incidents of ownership. See Hyde v.
Commissioner, 301 F.2d 279, 281 (2d Cir. 1962), affg. 36 T.C. 507
(1961); Stewart v. Commissioner, 9 T.C. 195, 197, 198 (1947);
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011