Estate of Reid v. Commissioner
United States Tax Court
A financial settlement and separation agreement between husband and wife providing for certain periodic payments to the wife made binding on the husband's estate, which agreement was entered into shortly prior to commencement of a divorce action, held incident to the divorce and payments made under it of the character described in section 22 (k); held, further, that such payments constitute taxable income to the divorced wife under section 171 (b) and constitute allowable…
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A financial settlement and separation agreement between husband and wife providing for certain periodic payments to the wife made binding on the husband's estate, which agreement was entered into shortly prior to commencement of a divorce action, held incident to the divorce and payments made under it of the character described in section 22 (k); held, further, that such payments constitute taxable income to the divorced wife under section 171 (b) and constitute allowable deductions to the former husband's estate under section 162 (b).
1Opinion of the Court
OPINION.
Tietjens, Judge:
In these consolidated proceedings the $30,000 annual payments in 1942 and 1943 were made to petitioner Margaret C. Izrastzoff, the divorced wife of the decedent, pursuant to a written instrument whereby because of the marital relationship a legal obligation to make such payments was imposed upon the former husband and his estate. The questions presented are whether such payments constituted taxable income to the divorced wife and constituted allowable deductions to the deceased husband’s estate.
Section 162 (b) of the Internal Revenue Code provides that an estate is…
2Cases cited2 opinions
- Lerner v. CommissionerUnited States Tax Court · 1950
- Fairbanks v. CommissionerUnited States Tax Court · 1950
3Cited by32 opinions
- Walsh v. Comm'rUnited States Tax Court · 1954
- Burrow Trust v. CommissionerUnited States Tax Court · 1963
- Izrastzoff v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. ToppingCourt of Appeals for the Second Circuit · 1952
- Twinam v. CommissionerUnited States Tax Court · 1954
- Grant v. CommissionerUnited States Tax Court · 1952
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