- 4 - 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.Page: Previous 1 2 3 4 5 6 NextLast modified: November 10, 2007