Nada Nahhas - Page 8

                                        - 7 -                                         
               Respondent disagrees and contends that the payments made in            
          2002 to petitioner qualified as alimony taxable to petitioner as            
          the recipient under section 71(b).  In particular, respondent               
          notes that the temporary order did not expressly provide that the           
          payments were not includable in petitioner’s gross income and not           
          allowable as a deduction by Mr. Nahhas under section 71(b)(1)(B).           
          Moreover, respondent points out that the temporary order did not            
          “fix” any portion of the payment as payable for the support of              
          the children as required by section 71(c)(1) for child support.             
          We agree with respondent.                                                   
               It is clear from the record that the 2002 payments satisfy             
          the requirements of subparagraphs (A) and (C) of section 71(b).             
          Petitioner received the payments under the terms of the temporary           
          order, and petitioner and Mr. Nahhas were not members of the same           
          household in 2002.                                                          
               The Court now considers section 71(b)(1)(B), which provides            
          that a payment will not be alimony if the divorce or separation             
          instrument designates the payment as not includable in gross                
          income and not allowable as an alimony deduction.  The                      
          designation in the divorce or separation instrument does not need           
          to specifically refer to section 71 or 215.  Estate of Goldman v.           
          Commissioner, 112 T.C. 317, 323 (1999), affd. without published             
          opinion sub nom. Schutter v. Commissioner, 242 F.3d 390 (10th               
          Cir. 2000).  The divorce or separation instrument, however, “must           

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011