Tracy v. Commissioner
United States Tax Court
Petitioner made monthly payments of alimony pursuant to a decree of divorce dated Dec. 18, 1970, which commenced Jan. 15, 1971, and which are to continue on the 15th day of each month thereafter until the sum of $ 60,000 has been paid. Mississippi law allows such payments to be made at any time during the 30-day period following the payment date. Held, the payments are deductible under sec. 215 because the payment period exceeds 10 years.
Read the full summary
Petitioner made monthly payments of alimony pursuant to a decree of divorce dated Dec. 18, 1970, which commenced Jan. 15, 1971, and which are to continue on the 15th day of each month thereafter until the sum of $ 60,000 has been paid. Mississippi law allows such payments to be made at any time during the 30-day period following the payment date. Held, the payments are deductible under sec. 215 because the payment period exceeds 10 years. Held, further, amounts paid by petitioner for the purpose of furnishing his ex-wife with a car are in the nature of a property settlement.
1Opinion of the Court
Sterrett, Judge:
Respondent, on August 25, 1976, issued a statutory notice of deficiency in which he determined a deficiency of $2,041.80 for petitioners’ taxable year ended December 31,1971.
Petitioners present two issues for our determination: (1) Whether payment made by John E. Tracy to Jacqueline Wantz Tracy in the amount of $500 per month pursuant to a decree of divorce dated December 18, 1970, is deductible by him under section 215, I.R.C. 1954, and (2) whether amounts paid by John E. Tracy pursuant to such decree in order to furnish Jacqueline Wantz Tracy with a car are deductible by him…
2Cases cited8 opinions
- Helvering v. StuartSupreme Court of the United States · 1942
- Thompson v. CommissionerUnited States Tax Court · 1968
- Hesse v. CommissionerUnited States Tax Court · 1973
- Newman v. CommissionerUnited States Tax Court · 1977
- Guess v. SmithMississippi Supreme Court · 1911
3 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Estate of Fletcher v. CommissionerUnited States Tax Court · 1990
- Thomas B. Blake v. Commissioner, Internal Revenue, Joyce M. Blake v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1987
- Blake v. CommissionerUnited States Tax Court · 1986
- Dorsey v. CommissionerUnited States Tax Court · 1985
- Estate of Fletcher v. CommissionerUnited States Tax Court · 1990
3 more not listed; retrieve them via the Exa API.