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jurisdiction, retroactive to June 1, 2000, over the character and
any allocation of the payments. On May 25, 2001, the State court
filed a second stipulation between petitioner and Ali which
provided in part that the community interests in SRC of
petitioner and Ali would be divided equally.
On June 25, 2001, the State court filed a stipulation
between petitioner and Ali which provided that the $24,000
monthly distributions from SRC were allocated one-half each to
petitioner and Ali. The June 25, 2001, stipulation also deemed
that the distributions allocated to petitioner and received by
Ali were paid by petitioner to Ali as unallocated family support
from June 1, 2000, to March 31, 2001, in satisfaction of his
obligation to provide support.
C. Petitioner’s Tax Return for 2000
Petitioner deducted $84,000 as alimony on his 2000 income
tax return for payments made by SRC on his behalf to Ali.
OPINION
A. Background and Petitioner’s Contentions
A taxpayer may deduct payments which qualify as alimony and
separate maintenance payments. Sec. 215(a). To qualify as
alimony, a payment must, among other requirements, be received by
or on behalf of a spouse under a divorce or separation
instrument. Secs. 71(b)(1)(A) and (2), 215(b). A divorce or
separation instrument is: (1) A decree of divorce or separate
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