Munderloh v. Commissioner
United States Tax Court
H and W were divorced on Nov. 5, 1953. On Oct. 15, 1953, they entered into a property settlement agreement under which H became obligated to pay W a lump sum of $ 5,000 and monthly payments of $ 125 until such monthly payments equaled $ 15,000, the making of said payments being conditioned on the subsequent entry of a divorce decree.
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H and W were divorced on Nov. 5, 1953. On Oct. 15, 1953, they entered into a property settlement agreement under which H became obligated to pay W a lump sum of $ 5,000 and monthly payments of $ 125 until such monthly payments equaled $ 15,000, the making of said payments being conditioned on the subsequent entry of a divorce decree. The laws of the State in which H and W resided (Maryland) provided that such an agreement was valid and binding on the parties thereto and would be set aside or modified by the divorce court only upon proof of collusion, mistake, or fraud. H paid W $ 5,000 on…
1Opinion of the Court
OPINION
Kern, Judge:
Periodic payments received by a divorced wife after a divorce decree in discharge of a legal obligation arising out of the marital relationship and “imposed on or incurred by the husband under the decree or under a written instrument incident to [a] divorce” are includable in the wife’s gross taxable income. Sec. 71(a)(1), I.B.C. 1954.1 Section 215(a)2 provides that such payments thus in-cludable in the wife’s gross income may ordinarily be deducted by the husband.
However, “installment payments discharging a part of an obligation the principal sum of which is * * *…
2Cases cited15 opinions
- Harris v. CommissionerSupreme Court of the United States · 1950
- Grossman v. GrossmanCourt of Appeals of Maryland · 1964
- Monroe v. WinnWashington Supreme Court · 1943
- John W., Jr. And Gloria Furrow v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1961
- Commissioner of Internal Revenue v. BlumCourt of Appeals for the Seventh Circuit · 1951
10 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Wright v. CommissionerUnited States Tax Court · 1974
- Joslin v. CommissionerUnited States Tax Court · 1969
- Schottenstein v. CommissionerUnited States Tax Court · 1980
- Thriftimart, Inc. v. CommissionerUnited States Tax Court · 1973
- William M. Joslin, Sr. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1970
10 more not listed; retrieve them via the Exa API.