- 2 - Respondent determined a $6,589 deficiency in petitioner’s 2002 Federal income tax. The sole issue before this Court is whether petitioner may deduct $23,400 as alimony paid to his ex- wife in taxable year 2002. Background Some of the facts have been stipulated and are so found. At the time that the petition was filed, petitioner resided in Clifton, New Jersey. Petitioner married Karen LaBozetta (Ms. LaBozetta) on April 3, 1993. One child was born of the marriage. The couple separated in 2001, and divorce proceedings were initiated in the Superior Court of New Jersey, Chancery Division, Family Part, Bergen County. The marriage was terminated by decree of divorce dated May 9, 2002. Included among the stipulated exhibits for this case is a copy of the Final Dual Judgment of Divorce, along with a copy of its underlying Property Settlement agreement (agreement). Relevant provisions of the agreement provide: (1) That the parties expressly bargained for a waiver of alimony from one another; (2) that petitioner owed Ms. LaBozetta $23,400 and; (3) that Ms. LaBozetta would pay petitioner $29,746 in a buyout arrangement for the couple’s marital home. As part of the agreement, the parties detailed how Ms. LaBozetta would buy out petitioner’s share of equity in thePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011