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SPOUSAL SUPPORT/RETIREMENT: Husband shall pay to
Wife as and for spousal support, alimony and
maintenance, the periodic sum of SEVEN HUNDRED ($700)
dollars per month, payable in one installment of
$700.00 on the 20th day of each month, beginning July
20, 1993, subject to automatic termination upon (a) the
Wife’s re-marriage, or (b) the death of Wife or
Husband, or (c) the youngest child reaching age
eighteen (18), whichever of said terminating
contingencies shall first occur.
Pursuant to the provision providing for spousal support,
petitioner made payments to his former wife totaling $8,400 in
1995 and $8,400 in 1996. Petitioner treated the payments as
alimony within the meaning of section 215(a) and deducted them
from his gross income in 1995 and 1996 on his Forms 1040, U.S.
Individual Income Tax Returns. Respondent determined that the
payments were not deductible as alimony and issued petitioner a
notice of deficiency.
Discussion
Pursuant to sections 71(a) and 215(a), alimony is taxable to
the recipient and is deductible by the payer. Child support
payments, on the other hand, are neither includable in income
under section 71 nor deductible under section 215. See sec.
71(c). Alimony is 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,
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Last modified: May 25, 2011