Magnus v. Commissioner
United States Tax Court
Pursuant to an agreement incident to his Illinois divorce decree, petitioner was obligated to pay his ex-wife $ 100,000 as nonmodifiable maintenance in gross. Petitioner could have discharged that obligation in installments, by making 12 equal monthly payments, or by making quarterly, semi-annual, or annual payments. Petitioner chose to make one payment, of $ 100,000, which he made contemporaneously with entering into the agreement and entrance of the divorce decree.
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Pursuant to an agreement incident to his Illinois divorce decree, petitioner was obligated to pay his ex-wife $ 100,000 as nonmodifiable maintenance in gross. Petitioner could have discharged that obligation in installments, by making 12 equal monthly payments, or by making quarterly, semi-annual, or annual payments. Petitioner chose to make one payment, of $ 100,000, which he made contemporaneously with entering into the agreement and entrance of the divorce decree. Held: A lump-sum payment of maintenance in gross is not a periodic payment within the meaning of section 71 and is therefore…
1Opinion of the Court
ALEXANDER B. MAGNUS, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Magnus v. Commissioner
Docket No. 28976-88.
United States Tax Court
T.C. Memo 1990-596; 1990 Tax Ct. Memo LEXIS 665; 60 T.C.M. (CCH) 1296; T.C.M. (RIA) 90596;
November 21, 1990, Filed
Decision will be entered for the respondent.
Pursuant to an agreement incident to his Illinois divorce decree, petitioner was obligated to pay his ex-wife $ 100,000 as nonmodifiable maintenance in gross. Petitioner could have discharged that obligation in installments, by making 12 equal monthly payments, or by making quarterly,…
2Cases cited11 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Pallottini v. CommissionerUnited States Tax Court · 1988
- Mailman v. CommissionerUnited States Tax Court · 1988
- In Re Marriage of FreemanIllinois Supreme Court · 1985
- Norton v. CommissionerUnited States Tax Court · 1951
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