- 8 - qualifies under any other exception. He alone is responsible for the section 72(t) additional tax. Respondent is sustained on this issue. The second issue is whether petitioner is entitled to a deduction for the $17,900 paid to his former spouse during 1997 as alimony. Amounts received as alimony or separate maintenance are includable in the recipient’s gross income under sections 61(a)(8) and 71(a) and are deductible by the payor under section 215(a) in the year paid. On the other hand, payments representing a property settlement are neither deductible to the payor nor includable in income by the recipient. Sec. 1041. For tax purposes, the term “alimony or separate maintenance payment” is defined in section 71(b)(1) as any payment in cash meeting the following four criteria: (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 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011