Mumtaz A. Ali - Page 7

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          provided that SRC’s payments were unallocated family support,               
          retroactive to the date of those payments.                                  
               Petitioner contends that Healey v. Commissioner, supra,                
          supports his position.  We disagree.  In Healey, a State court              
          gave retroactive effect to its nunc pro tunc order.  We said in             
          Healey that payments were not made deductible by means of a                 
          retroactive court order.  Id. at 1706.  Healey does not support             
          petitioner’s contention that retroactive State court actions are            
          recognized for purposes of the section 71(b)(1)(A) requirement              
          that payments be received under a divorce or separation                     
          instrument.                                                                 
               We do not recognize the retroactive nature of the State                
          court instrument in deciding whether, for purposes of section               
          71(b)(1)(A), the payments made by SRC were made under a written             
          divorce or separation agreement.  Thus, petitioner may not deduct           
          any of the $84,000 that SRC paid to Ali in 2000 as alimony.                 
          C.   Whether Petitioner May Exclude From Income the $84,000 That            
               SRC Paid to Ali in 2000                                                
               Petitioner’s community property share of income from SRC for           
          2000 is $84,000.  Petitioner contends that he may exclude that              
          amount from his income because SRC made the payments directly to            
          Ali.  We disagree.                                                          
               Petitioner has offered no authority for his position.                  
          Petitioner is taxed on his share of SRC community income even               
          though he chose to have it paid directly to Ali because income              





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