Marlin G. Springer - Page 10

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          Secs. 61(a)(8), 71(a), 215(a).7  The phrase “alimony or separate            
          maintenance payment” is defined in section 71(b)(1) as any cash             
          payment satisfying the following four requirements:                         
                         (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.                                        
          Respondent concedes that petitioner’s $50,000 payment to Ms.                
          Springer in 1996 satisfies subparagraphs (A), (B), and (C) of               
          section 71(b)(1).  The issue in dispute is whether the payment              
          satisfies subparagraph (D).                                                 
               If the terms of the divorce documents or Nebraska law would            
          have required the annual payments of $50,000 to terminate on the            

               7Sec. 215(a) provides a general rule that “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.”                                                 

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