Rocke Richard LaBozetta - Page 8

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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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