Barry L. Morris - Page 8

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          See sec. 215(a) (“In the case of an individual, there shall be              
          allowed as a deduction an amount equal to the alimony or separate           
          maintenance payments paid during such individual’s taxable                  
          year.”).  For Federal income tax purposes, alimony is defined as            
          any payment in cash that satisfies all of the following                     
          requirements: (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 includable in gross income under section 71            
          and not allowable as a deduction under section 215; (c) the payee           
          spouse and the payor spouse are not members of the same household           
          at the time the payment is made; and (d) there is no liability to           
          make any such payment, or a substitute for such payments, in cash           
          or property, after the death of the payee spouse.                           
          Sec. 71(b)(1)(A)-(D).                                                       
               At trial, petitioner testified that he “paid $59,000 in                
          spousal support in the year 2001.”  Respondent indicates, on                
          brief, that respondent was willing to allow petitioner a                    
          deduction for alimony payments if petitioner provided adequate              
          documentation to show the year in which alimony was paid.                   
          Petitioner attempted to do so at trial by submitting copies of              
          computer records reflecting numerous transfers of funds ($850 per           
          transfer) to his ex-wife in 2001.  However, those amounts could             
          also have been for child support and, in any event, those records           

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Last modified: March 27, 2008