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decree did not specify whether petitioner’s obligation to make
these payments would terminate upon his ex-wife’s death.
In 2003, petitioner paid his ex-wife $7,200 in monthly
installments per the divorce decree. Respondent contends that
these payments did not qualify as alimony under the Internal
Revenue Code.
Discussion3
Section 71(a) provides the general rule that alimony
payments are included in the gross income of the payee spouse;
section 215(a) provides the complementary general rule that
alimony payments are tax deductible by the payor spouse in “an
amount equal to the alimony or separate maintenance payments paid
during such individual’s taxable year.”
The term “alimony” means any alimony as defined in section
71. Section 71(b) provides:
SEC. 71(b). Alimony or Separate Maintenance
Payments Defined.--For purposes of this section–
(1) In general.–-The term “alimony or
separate maintenance payment” means any
payment in cash if–
(A) such payment is received by (or
on behalf of) a spouse under a divorce
or separation instrument,
(B) the divorce or separation
instrument does not designate such
payment as a payment which is not
3 The issue for decision is essentially legal in nature;
accordingly, we decide it without regard to the burden of proof.
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Last modified: November 10, 2007