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Respondent determined a deficiency in petitioners’ Federal
income tax for 2003 of $2,076.50. The sole issue for decision is
whether Kenneth W. Hinson properly deducted $7,200 paid to his
ex-wife in 2003 as alimony under section 71(b). We hold that he
did not.
Background
Some of the facts have been stipulated, and they are so
found. We incorporate by reference the parties’ stipulation of
facts and accompanying exhibits.
At the time the petition was filed, Kenneth W. Hinson
(petitioner) and Waldraut N. Hinson resided in Ponte Vedra Beach,
Florida.2
Petitioner and Linda Hinson were married in December 1969
and divorced in March 1993. The Final Judgment of Dissolution of
Marriage (divorce decree) provided that, inter alia, petitioner
was to pay his ex-wife $1,200 per month in “rehabilitative
alimony” until June 30, 1996. The divorce decree also provided
that petitioner was to pay his ex-wife a total of $72,000 in
“lump-sum alimony”, payable in installments of $600 per month,
beginning July 1, 1996, and ending June 30, 2006. The divorce
2 Although Kenneth and Waldraut Hinson petitioned the Court
in response to respondent’s notice of deficiency, only Mr. Hinson
appeared at trial. Further, the sole issue presented in this
case concerns payments Mr. Hinson made to his ex-wife in 2003.
Therefore, as a matter of convenience, we refer to Mr. Hinson
alone as petitioner.
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