- 2 - Respondent determined a deficiency of $5,306 in petitioners’ Federal income tax for 2000. The sole issue for decision is whether a payment of $18,3982 by petitioner David Vanarsdall (Mr. Vanarsdall) to his former wife, Debra Vanarsdall (the former spouse), during 2000 constitutes alimony deductible under section 215(a). That issue is resolved by whether the $18,398 payment satisfies the definition of “alimony or separate maintenance payment” under section 71(b)(1)(D).3 The parties submitted this case fully stipulated under Rule 122. The stipulated facts are so found, and those facts, with the annexed exhibits, are incorporated herein by reference. At the time the petition was filed, Mr. Vanarsdall was a legal resident of Marathon, Florida. Petitioner’s divorce was finalized June 29, 1987, and was rendered by an Indiana State court. A Separation and Property Settlement Agreement (the Agreement), which was incorporated into the Dissolution Decree, was offered as a stipulated exhibit. In 2Petitioners originally claimed an alimony deduction for $28,398 on their 2000 joint Federal income tax return. Petitioners amended their 2000 return to reduce the deduction to $18,398. A copy of Form 1040X, Amended U.S. Individual Income Tax Return, reflecting the latter amount was admitted into evidence. 3Another adjustment in the notice of deficiency, a decrease in itemized deductions, is computational and will be resolved by the Court’s holding on the principal issue.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011