Michael Robert Peterson - Page 10

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          would be no logical reason for a court to order the payor spouse            
          to continue making unallocated support payments.                            
               The present case is similar to Kean v. Commissioner, supra.            
          During the 2000 taxable year, petitioner had joint legal custody            
          of Marc and Christopher and residential custody of Christopher.             
          If Ms. Peterson had died during the pendency of the divorce                 
          proceeding, such proceeding would have abated, while the issue of           
          residential custody of Marc would not have abated.  Petitioner              
          would then have had to seek a court order or judgment on this               
          issue, but absent unusual circumstances not present here, custody           
          would have reverted to petitioner.  Similar to Kean, there would            
          be no logical reason in the present case for the New Jersey court           
          to order that petitioner continue to make unallocated support               
          payments.                                                                   
               We conclude that, under the particular facts of this case,             
          petitioner’s obligation to make unallocated support payments                
          during the pendency of the divorce proceedings would have                   
          terminated at Ms. Peterson’s death, and as such, the requirements           
          of section 71(b)(1)(D) are satisfied.  We further conclude that             
          unallocated support payments made in the present case are alimony           
          or separate maintenance payments for Federal income tax purposes            
          and that such payments in the amount of $24,424 are deductible by           
          petitioner under section 215.                                               








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