Randall L. Sindelir - Page 5




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                                     Discussion4                                      
               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, which provides in relevant part:                                        
                    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                            
                         includible in gross income * * * 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                                                    



               4  The issue for decision under these facts is essentially             
          legal in nature; therefore, we decide the instant case without              
          regard to the burden of proof.                                              





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