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the court-ordered maintenance payments of $1,400 per month for
the first 6 months of that year, plus the reduced amount of $500
per month for the last 6 months. The disallowed alimony,
totaling $33,619.68, consisted of petitioner’s 8 months of
payments on the second mortgage at $529.96, plus the $29,380
amount petitioner used to pay off the balance of the second
mortgage in August 1996.
OPINION
The issue in this case is whether certain payments made by
petitioner pursuant to the court orders and decrees in his
divorce proceeding are "alimony or separate maintenance payments"
as defined in section 71. If so, they are deductible by
petitioner in the year paid. See secs. 71(a), 215(a). Alimony
does not include any part of a payment which the terms of the
divorce instrument fix as a sum payable for the support of the
children of the payer spouse. See sec. 71(c).
Congress amended section 71 in the Deficit Reduction Act of
1984, Pub. L. 98-369, sec. 422(a), 98 Stat. 795. The
purpose behind the amendment was to define more precisely the
payments that would constitute alimony, deductible by the payor.
See H. Rept. 98-432 (part 2) at 1495 (1984), which provides:
The committee believes that a uniform Federal standard
should be set forth to determine what constitutes
alimony for Federal tax purposes. This will make it
easier for the Internal Revenue Service, the parties to
a divorce, and the courts to apply the rules to the
facts in any particular case * * *
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