Warnack v. Commissioner
United States Tax Court
Held: Payments made by husband to wife under a written separation agreement are periodic payments includable in wife's gross income under sec. 71(a)(2), I.R.C. 1954, and deductible to husband under sec. 215. Apparent discrepancy between value of assets allocated to each in community property State did not require a determination that monthly payments in fact represented part of a division of property, particularly when, among other facts, wife's attorney drafted agreement…
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Held: Payments made by husband to wife under a written separation agreement are periodic payments includable in wife's gross income under sec. 71(a)(2), I.R.C. 1954, and deductible to husband under sec. 215. Apparent discrepancy between value of assets allocated to each in community property State did not require a determination that monthly payments in fact represented part of a division of property, particularly when, among other facts, wife's attorney drafted agreement that included provision that payments were deductible to husband and includable by wife.
1Opinion of the Court
Sterrett, Judge:
Respondent’s motion to consolidate the above two cases was granted on January 11, 1978. Respondent determined deficiencies in income taxes paid by petitioners A. C. Warnack and Shirley Warnack, husband and wife (docket No. 879-77), for the following years and in the following amounts:
TYE Dec. 31— Deficiency
1971 . $13,913.03
1972 . 16,322.00
1973 . 135,661.00
1974 . 14,552,00
Total 80,448.03
Respondent determined deficiencies in income taxes paid by petitioner Betty Warnack Boudreau (docket No. 1507-77) for the following years and in the following amounts:
TYE Dec. 31— Deficiency
1969…
2Cases cited17 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Elizabeth H. Bardwell v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1963
- Golsen v. CommissionerUnited States Tax Court · 1970
- Bertha Soltermann v. United StatesCourt of Appeals for the Ninth Circuit · 1959
12 more not listed; retrieve them via the Exa API.
3Cited by30 opinions
- Jacklin v. CommissionerUnited States Tax Court · 1982
- Beard v. CommissionerUnited States Tax Court · 1981
- Schottenstein v. CommissionerUnited States Tax Court · 1980
- Crouser v. CommissionerUnited States Tax Court · 1980
- Westbrook v. CommissionerUnited States Tax Court · 1980
25 more not listed; retrieve them via the Exa API.