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include these amounts in gross income under section 71.
Therefore, to demonstrate that a cash payment is deductible under
section 215, a taxpayer must prove, inter alia, that the payment
was made pursuant to a written divorce or separation instrument
that did not designate the payment as not includable in the payee
spouse's gross income under section 71. See sec. 71(b)(1)(A) and
(B).
Petitioner was required to pay Ms. Tang $400 per month as
"family support". Although we would ordinarily review the
divorce instruments and other documents to determine whether the
payments made by petitioner to Ms. Tang were alimony, petitioner
did not provide us with divorce instruments or other documents,
such as Ms. Tang's Federal income tax returns during the years in
issue, to prove that Ms. Tang was required to include the "family
support" payments as income pursuant to section 71. In addition,
petitioner did not call Ms. Tang to testify. Accordingly,
petitioner is not allowed a deduction for the "family support"
payments to Ms. Tang.
Issue 2. Whether Petitioner May Deduct Various Schedule C
Expenses
Petitioner claims the following expenses related to his
consulting business as Schedule C, Profit and Loss From Business,
deductions:
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Last modified: May 25, 2011