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Section 215(a) allows an individual a deduction for alimony
paid during the taxable year. In general, a payment constitutes
alimony within the meaning of section 215 if the payment is made
in cash and meets the following four criteria: (1) Such payment
is received by (or on behalf of) a spouse under a divorce or
separation instrument, (2) the divorce or separation instrument
does not designate such payment as a payment which is not
includable in gross income under this section and not allowable
as a deduction under section 215, (3) 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 (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)(1), 215(b).
Respondent agrees that the payments made by petitioner under
the terms of the settlement agreement satisfy the first three
requirements of section 71(b)(1): (1) The payments were made
pursuant to a divorce decree; (2) the divorce decree did not
designate the payments as ones that are excluded from treatment
as alimony under section 71 and section 215; and (3) petitioner
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Last modified: May 25, 2011