Donald Richard Lowe - Page 5

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          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.”            








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