Bernard v. Commissioner
United States Tax Court
Petitioner husband made a lump-sum payment to petitioner wife to discharge past and future child and spousal support. The amount of the lump-sum payment exceeded the amount of the support arrearages. Held, portions of lump-sum payment attributable to past child support, future child support, past spousal support, and future spousal support are determined.
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Petitioner husband made a lump-sum payment to petitioner wife to discharge past and future child and spousal support. The amount of the lump-sum payment exceeded the amount of the support arrearages. Held, portions of lump-sum payment attributable to past child support, future child support, past spousal support, and future spousal support are determined. Held, further, portion attributable to past spousal support is income to petitioner wife and deductible by petitioner husband; portion attributable to future spousal support is not income to wife and not deductible by husband.
1Opinion of the Court
Fay, Judge:
Respondent determined deficiencies in petitioners’ 1977 Federal income tax. After concessions, the issue for decision is the tax treatment of a lump-sum payment made by a former husband to his former wife in discharge of his past and future child and spousal support obligations where the amount of the payment is greater than the support arrearages.1
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation and exhibits attached thereto are incorporated herein by this reference.
Petitioner Beth Ann Bernard (hereinafter petitioner wife) resided…
2Cases cited9 opinions
- Commissioner v. LesterSupreme Court of the United States · 1961
- Kent v. CommissionerUnited States Tax Court · 1973
- Dorothy Olster v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Eleventh Circuit · 1985
- Loverin v. CommissionerUnited States Tax Court · 1948
- Commissioner of Internal Revenue v. James C. Senter and Susan B. Senter, Anthony Foster McKissick v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
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3Cited by4 opinions
- Kimball v. CommissionerUnited States Tax Court · 1987
- Bernard v. CommissionerUnited States Tax Court · 1986
- Scott v. CommissionerUnited States Tax Court · 1988
- Verticelli v. CommissionerUnited States Tax Court · 1991