Chester W. Bonar - Page 5




                                        - 4 -                                         
                    (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.  [Sec. 71(b)(1).]                           
               Child support is that part of a payment which the divorce or           
          separation instrument fixes as payable for the support of the               
          children of the payor spouse.  See sec. 71(c)(1).  An amount is             
          treated as fixed under section 71(c)(1) and thus treated as child           
          support if it will be reduced "on the happening of a contingency            
          specified in the instrument relating to a child (such as                    
          attaining a specified age, marrying, dying, leaving school, or a            
          similar contingency)”.  Sec. 71(c)(2)(A).                                   
          Respondent maintains that petitioner’s payments to his                      
          former spouse are not alimony within the meaning of section 71(b)           
          and thus are not deductible.  Petitioner, on the other hand,                
          maintains that the payments were made in accordance with the                
          provision in the Agreement calling for “spousal support, alimony            
          and maintenance” and that the Agreement had a separate provision            
          providing for child support.  Petitioner also points out that his           
          “alimony” payments to his former spouse were not reduced, as were           
          the payments required under the Agreement for child support, in             








Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011