Yost v. O'Malley

DONOHOE, Chief Judge.

The question for determination in this case is whether or not the sum of $2,-951.11, paid by the Taxpayer to his wife for the relinquishment of her marital rights in rental property sold by the Taxpayer, should be treated as a deductible expense in computing his gain on the sale. Some years prior to the date of the sale, the Taxpayer and his wife were separated by a decree of separate, maintenance under the laws of Nebraska, and by that decree, the wife was allowed certain alimony which was paid up to date. At the time of the transaction in question, the Taxpayer and his…