- 4 -
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 (4) 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. Secs. 71(b), 215(b).
For Federal income tax purposes, however, alimony does not
include any part of a payment that the terms of the divorce
instrument fix as a sum payable for the support of the children
of the payor spouse. Sec. 71(c)(1). Thus, child support
payments are neither includable in income under section 71 nor
deductible under section 215. Relevant for our purposes, an
amount is treated as fixed under section 71(c)(1) and thus
treated as child support if it will be reduced “on the happening
of a contingency specified in the instrument relating to a child
(such as attaining a specified age, marrying, dying, leaving
school, or a similar contingency)”. Sec. 71(c)(2)(A). Temporary
regulations promulgated under section 71 make clear that for
purposes of section 71(c), “a contingency relates to a child of
the payor if it depends on any event relating to that child,
regardless of whether such event is certain or likely to occur.”
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011