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outcome that would result were we to interpret the terms of the
agreement to include alimony, and petitioner’s testimony about
his wishes regarding the marital home, adequately establish that
the agreement cannot be interpreted to prove an alimony
obligation.
In summary, we find the agreement clear, controlling, and an
exclusive statement of all of the terms of the parties’
settlement. Accordingly, we will not consider any extrinsic
negotiations, notations, or side agreements which may have
existed between petitioner and Ms. LaBozetta.
B. Waiver of Buyout Equity
We next turn to the agreement itself and specifically,
whether petitioner’s reduction in the amount of equity owed to
him by Ms. LaBozetta might qualify as a deductible alimony
payment pursuant to section 71(b). Payments pursuant to a
property settlement (such as the agreement) are generally not
deductible for tax purposes from the income of the paying spouse.
Yoakum v. Commissioner, 82 T.C. 128, 134 (1984) (and cases cited
thereat). Under section 215, a deduction is allowed for an
amount equal to alimony or separate maintenance payments paid
during the taxable year. “[A]limony or separate maintenance
payment” means any alimony or separate maintenance payment that
is included in the gross income of the recipient under section
71. Sec. 215(b).
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