Davis v. Commissioner
United States Tax Court
Under a divorce decree granted in 1954 petitioner's ex-husband was obligated to pay petitioner $ 300 per month as alimony. Upon the husband's default in meeting these payments, petitioner and her ex-husband entered into an accord in 1958 providing for payment to petitioner of two $ 4,000 payments in 1958, and for 15 annual payments of $ 750 each.
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Under a divorce decree granted in 1954 petitioner's ex-husband was obligated to pay petitioner $ 300 per month as alimony. Upon the husband's default in meeting these payments, petitioner and her ex-husband entered into an accord in 1958 providing for payment to petitioner of two $ 4,000 payments in 1958, and for 15 annual payments of $ 750 each. Held, the two $ 4,000 payments received by petitioner in 1958 were in settlement of arrearages of alimony due under the original divorce decree and do not qualify as installment payments of a principal sum due under a divorce decree or agreement…
1Opinion of the Court
OPINION
The only question for our determination is whether the two $4,000 payments to petitioner during the year in question pursuant to the accord were periodic payments includable in petitioner’s taxable income for that year or were installments of a principal sum and properly excludable from her taxable income. No issue is raised with respect to tbe $300 included in petitioner’s taxable income by respondent. Also, no issue is raised as to whether the accord was incident to a divorce decree. Cf. Newton v. Pedrick, 212 F. 2d 357 (C.A. 2, 1954).
The relevant section of the 1954 Code, section…
2Cases cited16 opinions
- Gale v. CommissionerUnited States Tax Court · 1949
- Gale v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. GaleCourt of Appeals for the Second Circuit · 1951
- Grant v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
- Bartsch v. CommissionerUnited States Tax Court · 1952
- Loverin v. CommissionerUnited States Tax Court · 1948
11 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Dorothy Olster v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Eleventh Circuit · 1985
- Olster v. CommissionerUnited States Tax Court · 1982
- Mavity v. CommissionerUnited States Tax Court · 1964
- Stroud v. CommissionerUnited States Tax Court · 1993
- Benson v. CommissionerUnited States Tax Court · 1983
7 more not listed; retrieve them via the Exa API.