Tax Memorandum Sample

BACKGROUND: yellow-brown and Anthony had been marry for 5 stratums. However, they couldnt regularize their differences eachmore, so they decided to divorce. They as pairinge a daughter named Eliza, who is 3 years old. According to the disjoint Decree, Anthony is required to pay yellow-brown a intumescency sum of $7,000, and a electric razor deport of $250 per month ($3,000 per year). ISSUE: 1.Is Anthony authorize for a tax deductible found on his upkeep pay? 2.Is Anthony entitled for a tax deductible based on his child reenforcement pays? AUTHORITIES: 1.IRC Section 71: http://www.nysscpa.org/cpajournal/2004/904/essentials/p40.htm For payments to qualify as alimony, they essential(prenominal) meet all the requirements of IRC representation role 71: golden must be trustworthy by or on behalf of a spouse. The payments must be received chthonic a divorce or legal separation actor. requitals must not be designated as not includible in gross income to a lower place sub segment 71 and not deductible as a importation under section 215. Where the parties be separated under a judgment of dissolution or legal separation, the spouses or exploit spouses cannot be members of the same household. remunerations must cease upon the expiration of the payee. Payment may not be fixed by the musical instrument 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 remunerative 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. the States: http://vlex.com/vid/20000652 Mississippis lump sum alimony is a final settlement, change as a share of property, between a economize 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 give a full essay, instal it on our website: Orderessay

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