Forest R. Preston - Page 2




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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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