Schottenstein v. Commissioner
United States Tax Court
Separation agreement entered into incident to a divorce provided, among other things, that "By way of property settlement," husband would pay wife $ 300,000 in installments of $ 12,000 per year.
Read the full summary
Separation agreement entered into incident to a divorce provided, among other things, that "By way of property settlement," husband would pay wife $ 300,000 in installments of $ 12,000 per year. Despite the fact that the parties intended and agreed that the $ 12,000 annual payments would be treated as a division of property for State court and Federal tax purposes, the payments were in fact in the nature of support or alimony, taxable to the wife and deductible by the husband.
1Opinion of the Court
Drennen, Judge:
In these consolidated cases, the respondent has determined the following deficiencies in the 1973 income tax of petitioners:
Docket No. Petitioner Deficiency
10332-76 Joyce Schottenstein $3,825.84
4505-77 Alan J. Schottenstein 63,537.00
After concessions, the only issue for decision is whether $12,000 paid to petitioner Joyce Schottenstein by petitioner Alan J. Schottenstein is includable in petitioner Joyce Schottenstein’s income pursuant to section 71, I.R.C. 1954, and is deductible by petitioner Alan J. Schottenstein pursuant to section 215.1
FINDINGS OF FACT
Some of the facts…
2Cases cited22 opinions
- United States v. DavisSupreme Court of the United States · 1962
- Elizabeth H. Bardwell v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1963
- Wolfe v. WolfeOhio Supreme Court · 1976
- Bardwell v. CommissionerUnited States Tax Court · 1962
- Thompson v. CommissionerUnited States Tax Court · 1968
17 more not listed; retrieve them via the Exa API.
3Cited by39 opinions
- Jacklin v. CommissionerUnited States Tax Court · 1982
- Beard v. CommissionerUnited States Tax Court · 1981
- Benedict v. CommissionerUnited States Tax Court · 1984
- McIntosh v. CommissionerUnited States Tax Court · 1985
- Eatinger v. CommissionerUnited States Tax Court · 1990
34 more not listed; retrieve them via the Exa API.