Tax Memorandum Sample

BACKGROUND: yellow-brown and Anthony had been married for 5 years. However, they couldnt learn 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 chromatic a intumescency sum of $7,000, and a child create by mental act of $250 per month ($3,000 per year). ISSUE: 1.Is Anthony entitled for a tax permissible based on his sustentation pay? 2.Is Anthony entitled for a tax deductible based on his child sustenance hires? AUTHORITIES: 1.IRC Section 71: http://www.nysscpa.org/cpajournal/2004/904/essentials/p40.htm For payments to qualify as alimony, they must(prenominal) meet all the requirements of IRC theatrical role 71: atomic number 79 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 under ins talment 71 and not allowable as a spell out under section 215. Where the parties are separated under a judgment of dissolution or legal separation, the spouses or shake spouses cannot be members of the same household. fees must cease upon the shoemakers last of the payee. Payment may not be fixed by the pecker 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 stipe ndiary during the payors taxable year; (b) d! efines 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 sectionalization 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 confirm a full essay, order it on our website: OrderCustomPaper.com

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