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Discussion
We must determine whether petitioner may deduct any of the
disputed payments as alimony. Respondent determined that he
could not. Petitioner bears the burden of proving respondent's
determination wrong. See Rule 142(a); Welch v. Helvering, 290
U.S. 111, 115 (1933).
An individual may generally deduct a payment made during the
taxable year to a spouse3 to the extent it is alimony that is
includable in the spouse's gross income. See sec. 215(a) and
(b). A payment is alimony that is includable in a spouse's gross
income when: (1) The payment is made in cash, (2) the payment is
received by (or on behalf of) the spouse under a divorce or
separation instrument, (3) the divorce or separation instrument
does not provide that the payment is not reportable as alimony,
(4) the spouses reside in separate households at the time the
payment is made, (5) the spouses do not file a joint return, and
(6) the liability for payment does not continue for any period
after the spouse's death. See sec. 71 (b)(1), (e). Each of
these requirements must be met before a payor may deduct a
payment as alimony. We concern ourselves only with the three
requirements in dispute.
First, the need for a cash payment requires that alimony be
paid in cash or a cash equivalent. A check or money order that
is payable on demand is a cash equivalent. A debt instrument
3 We use the term "spouse" to refer to a present or former
spouse.
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