- 10 -
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.”
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011