Patricia P. Kean - Page 10

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          taxable to the recipient and deductible by the payor.  Secs.                
          61(a)(8), 71, 215.  Whether a payment constitutes alimony is                
          determined by reference to section 71(b).                                   
               Section 71(b) provides:                                                
                    SEC. 71(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--                                              
                              (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,                                 
                              (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.                                                









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Last modified: May 25, 2011