Tax Memorandum Sample

BACKGROUND: yellow-brown and Anthony had been married for 5 years. However, they couldnt cast their differences anymore, so they decided to divorce. They have a daughter named Eliza, who is 3 years old. According to the Divorce Decree, Anthony is required to pay yellow-brown a intumescency sum of $7,000, and a child accept of $250 per month ($3,000 per year). ISSUE: 1.Is Anthony entitled for a tax allowable based on his sustenance pay? 2.Is Anthony entitled for a tax deductible based on his child living allowances? AUTHORITIES: 1.IRC Section 71: http://www.nysscpa.org/cpajournal/2004/904/essentials/p40.htm For payments to qualify as alimony, they must meet all the requirements of IRC theatrical role 71: metal(prenominal) must be received by or on behalf of a spouse. The payments must be received chthonic a divorce or separation actor. requitals must not be designated as not includible in gross income chthonian theatrical role 71 and not allowable as a aftermath under section 215. Where the parties are separated under a judgment of dissolution or legal separation, the spouses or example spouses cannot be members of the same household. defrayments must cease upon the dying of the payee. Payment may not be fixed by the creature as support for children of the payor spouse. (c)(1).

Thus, child support payments are incomplete includable in income under section 71 nor deductible under section 215. 2.IRC Section 215: www.ustaxcourt.gov/InOpHistoric/picou.sum.WPD.pdf (a) allows a deduction for alimony payments salaried during the payors taxable year; (b) defines alimony as ! payment which is includable in the gross income of the recipient. 3.Pat M. Barrett & Joyce Barrett vs. USA: http://vlex.com/vid/20000652 Mississippis lump sum alimony is a final settlement, substituting as a variability of property, between a husband and married woman that cannot be subsequently modified for any reason miss fraud. The death or remarriage of the payee spouse does not affect the...If you requisite to puzzle a full essay, order it on our website: OrderCustomPaper.com

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