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whether petitioner may deduct $47,482, $40,089, and $24,340 of
alimony1 for the respective years. We hold that his alimony
deductions for the respective years are $1,878, $5,014, and zero.
Unless otherwise stated, section references are to the Internal
Revenue Code in effect for the subject years. Rule references
are to the Tax Court Rules of Practice and Procedure. Dollar
amounts are rounded to the nearest dollar.
Background
All facts were either stipulated or found by the Court from
exhibits accompanying the stipulation of facts. The stipulations
of fact and accompanying exhibits are incorporated herein by this
reference. Petitioner is a cash method taxpayer who resided in
Hamilton, Georgia, when he petitioned the Court.
Petitioner claimed alimony deductions of $60,102, $34,946,
and $24,202 on his 1992, 1993, and 1994 Federal income tax
returns, respectively. Respondent disallowed these deductions,
determining that the payments were not alimony. Petitioner
concedes that some of the reported amounts did not constitute
alimony. Petitioner argues that his alimony deductions for the
respective years are $47,482, $40,089, and $24,340.
Petitioner married Dianne Sowell (Ms. Sowell) in 1974, and
they had two children (collectively, the children) during their
marriage. The older child, Ashley Denise Preston (Ashley), was
born October 19, 1976. The younger child, Martin Barron Sowell
Preston (Barron), was born October 3, 1984. For most of 1991,
1 We use the term "alimony" to include "separate maintenance
payments".
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