- 5 - that petitioner is not entitled to deduct payments made to Leslie Benham under the Temporary Agreement as alimony. Petitioner argues that because the payments in question were made pursuant to a written separation agreement, it does not matter that he and Leslie Benham resided in the same household while the payments were made. Section 215 states that "there shall be allowed as a deduction an amount equal to the alimony or separate maintenance payments [defined in section 71(b)] paid during such individual's taxable year." Whether petitioner's payments qualify for deduction therefore hinges on their meeting the definition of "alimony" contained in section 71(b)(1). Section 71(b)(1) defines the term "alimony or separate maintenance payment" The term "alimony or separate maintenance payment" means any payment in cash if -- (A) such payment is received by (or on behalf of) a spouse under a divorce or separation instrument, (B) the divorce or separation instrument does not designate such payment as a payment which is not includible in gross income under this section and not allowable as a deduction under section 215, (C) in the case of an individual legally separated from his spouse under a decree of divorce or of separate maintenance, the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and (D) there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment (in cash or property) as a substitute for such payments after the death of the payee spouse.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011