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payments consistent with section II of the agreement quoted
above.
On Form 1040, U.S. Individual Income Tax Return, for 2004,
petitioner claimed a deduction for “alimony paid” in the total
amount of $218,000. Of that amount, $200,000 remains in dispute.
OPINION
Section 215(a) provides a deduction to an individual equal
to the alimony or separate maintenance payments paid during that
individual’s taxable year. Section 215(b) defines alimony as any
payment that is includable in the gross income of the payee under
section 71. Section 71(a) provides for the inclusion in income
of any alimony or separate maintenance payments received during
the taxable year. Section 71(b)(1) defines “alimony or separate
maintenance payment” as 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
includible in gross income under this section and not
allowable as a deduction under section 215,
(C) in the case of an individual legally separated
from his spouse under a decree of divorce or of
separate maintenance, the payee spouse and the payor
spouse are not members of the same household at the
time such payment is made, and
(D) there is no liability to make any such payment
for any period after the death of the payee spouse and
there is no liability to make any payment (in cash or
property) as a substitute for such payments after the
death of the payee spouse.
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Last modified: November 10, 2007