- 2 - Hawley (Ms. Gilbert), for the taxable years 1993, 1994, and 1995 of $7,163, $8,922, and $6,157, respectively. Respondent determined deficiencies in the Federal income tax of petitioner Richard C. Hawley, M.D. (Mr. Hawley), for the taxable years 1993, 1994, and 1995 of $21,644, $23,261, and $19,355, respectively.1 After concessions, the issue remaining to be decided in the instant cases is whether any part of the unallocated child and spousal support payments constitutes alimony under section 712 that is deductible by the payor spouse, Mr. Hawley, under section 215, and includable in the gross income of the payee spouse, Ms. Gilbert, under sections 61(a)(8) and 71(a). In the notices of deficiency and on brief, respondent has taken inconsistent positions, in that respondent disallowed deductions to Mr. Hawley and required Ms. Gilbert to report alimony income. Respondent asks us to allocate the subject payments consistently between petitioners. Moreover, if we find that the payments constitute alimony, then we must decide whether Ms. Gilbert is liable under section 55 for alternative minimum tax because of the increase in her gross income from the alimony adjustment. 1These cases have been consolidated for purposes of briefing and opinion because they involve common questions of law and fact arising from the separation and divorce of petitioners. 2All section references are to the Internal Revenue Code, as amended, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011