Lazar Simov Kovachevich - Page 7




                                        - 6 -                                         
         of a spouse under a divorce or separation instrument; (2) the                
         instrument does not designate the payment as a payment that is               
         not includable in the recipient’s gross income and not allowable             
         as a deduction to the payor; (3) the payee and payor are not                 
         members of the same household at the time of payment; and (4)                
         there is no liability to make any payments after the payee’s                 
         death.  Secs. 71(b), 215(b).                                                 
              Because petitioner offered no evidence to show that the                 
         payments were made under a divorce or separation instrument, the             
         payments do not constitute alimony, and he is not entitled to the            
         deduction.  See Prince v. Commissioner, 66 T.C. 1058, 1067                   
         (1976); Herring v. Commissioner, 66 T.C. 308, 311 (1976); Clark              
         v. Commissioner, 40 T.C. 57, 58 (1963).  Given the disposition of            
         this issue on this element, we need not discuss the other                    
         elements.  Accordingly, respondent’s determination is sustained.             
         III. Casualty Loss                                                           
              Section 165(a) allows a deduction for any loss sustained                
         during the taxable year and not compensated for by insurance or              
         otherwise.  With respect to individuals, deductions for losses               
         are limited to losses:  (1) Incurred in a trade or business; (2)             
         incurred in a transaction for profit; or (3) of property not                 
         connected with a trade or business or a transaction entered into             
         for profit, if the losses arise from fire, storm, shipwreck, or              
         other casualty, or from theft.  Sec. 165(c).  In order for the               







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next 

Last modified: November 10, 2007