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by disallowing the personal exemption deduction and including the
Vanguard distribution. Petitioner challenges each of those
adjustments.
Discussion
I. The Deduction for Alimony
Generally, payments of alimony are deductible to the paying
spouse (here, petitioner) and includable in income by the
recipient spouse (here, Ms. Hodson). See secs. 71, 215. In
pertinent part, section 215 provides:
SEC. 215. ALIMONY, ETC., PAYMENTS.
(a) General Rule. – In the case of an individual,
there shall be allowed as a deduction an amount equal
to the alimony or separate maintenance payments paid
during such individual’s taxable year.
(b) Alimony or separate maintenance payments
defined. – For purposes of this section, the term
“alimony or separate maintenance payment” means any
alimony or separate maintenance payment (as defined in
section 71(b)) which is includable in the gross income
of the recipient under section 71.
Section 71(a) provides: “Gross income includes amounts
received as alimony or separate maintenance payments.” In
pertinent part, section 71(b) and (c) provides:
SEC. 71. ALIMONY AND SEPARATE MAINTENANCE PAYMENTS
(b) Alimony or separate maintenance payments defined.--
For purposes of this section-–
(1) In general.--The term “alimony or separate
maintenance payment” means any payment in cash if
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