Sharp v. Commissioner
United States Tax Court
In connection with a judgment rendered in a divorce proceeding, petitioner was ordered to pay a lump sum to his former wife. He appealed the judgment, and in accordance with the Kentucky Rules of Civil Procedure, he posted a supersedeas bond to stay execution on that part of the judgment ordering the lump-sum payment, which stay was to remain effective pending the outcome of the appeal. His appeal was partially successful and the amount of the lump-sum award was reduced.
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In connection with a judgment rendered in a divorce proceeding, petitioner was ordered to pay a lump sum to his former wife. He appealed the judgment, and in accordance with the Kentucky Rules of Civil Procedure, he posted a supersedeas bond to stay execution on that part of the judgment ordering the lump-sum payment, which stay was to remain effective pending the outcome of the appeal. His appeal was partially successful and the amount of the lump-sum award was reduced. However, under Kentucky law, he was required to pay to his former wife an additional sum, denoted as damages, equal to 10…
1Opinion of the Court
OPINION
Dawson, Judge:
This is a companion case to Sharp v. Commissioner, 75 T.C. 32 (1980), decided this day.
Respondent determined a deficiency of $4,366.68 in petitioner’s Federal income tax for the year 1975 and an addition to tax under section 6651(a)1 in the amount of $655.34. As a result of concessions by the parties, the only issue presented for decision is whether petitioner is entitled to an interest deduction under section 163 for the amount of supersedeas damages State law required him to pay to his former wife for having unsuccessfully appealed a portion of a monetary judgment…
2Cases cited29 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Wilkerson v. CommissionerUnited States Tax Court · 1978
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- Louisville & Nashville Railroad v. StewartSupreme Court of the United States · 1916
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3Cited by13 opinions
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