David K. and Alice Vanarsdall - Page 3

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               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.                                 




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