Orsatti v. Commissioner
United States Tax Court
Decedent and his wife, incident to a divorce, entered into a property settlement agreement dated July 16, 1942, which provided that the wife was to receive alimony payments of $ 125 per week for a period of two years or until such time as she died or remarried.
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Decedent and his wife, incident to a divorce, entered into a property settlement agreement dated July 16, 1942, which provided that the wife was to receive alimony payments of $ 125 per week for a period of two years or until such time as she died or remarried. Decedent made such payments to his wife each week from July 18, 1942, continuously until and including July 29, 1944. Held, the payments made by decedent to his divorced wife in the taxable years 1942, 1943, and 1944 were "installment" payments within the meaning of section 22 (k) and were therefore not deductible under the provisions…
1Opinion of the Court
OPINION.
Arundell, Judge’.
The principal issue between the parties is whether, under the facts in the instant case, payments made by decedent to his wife pursuant to the property settlement agreement incident to their divorce were “periodic” or “installment” payments within the meaning of section 22 (k) of the Internal Revenue Code.1 The de-ductibility of these payments by decedent under section 23 (u) 2 rests upon the determination of this issue.
Petitioners point to the fact that under the agreement herein the total amount which decedent was obligated to pay was contingent upon the death or…
2Cases cited2 opinions
- Steinel v. CommissionerUnited States Tax Court · 1948
- Lee v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- Orsatti v. CommissionerUnited States Tax Court · 1949