Tax Memorandum Sample

BACKGROUND: yellow-brown and Anthony had been married for 5 years. However, they couldnt tell 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 gilt a intumescency sum of $7,000, and a child channel of $250 per month ($3,000 per year). ISSUE: 1.Is Anthony entitled for a tax allowable based on his sustentation pay? 2.Is Anthony entitled for a tax deductible based on his child supporting pays? 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: gold 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 segment 71 and not allowable as a result u nder section 215. Where the parties are separated under a judgment of dissolution or legal separation, the spouses or fare spouses cannot be members of the same household. recompenses must cease upon the dying of the payee. Payment may not be fixed by the promoter as support for children of the payor spouse. (c)(1).

Thus, child support payments are neither 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 compensable during the payors taxable year; (b) defines ali mony as payment which is includable in the g! ross 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 department 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 rile a full essay, order it on our website: OrderCustomPaper.com

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