According to the terms of his divorce, an ex-husband was required to provide child support payments of $8,307 and alimony payments of $8,205 ($16,512 total) for the year in question. However, he only paid a $9,688 for both child support and alimony that year, claiming the entire amount as alimony. According to IRC Sec. 71(c)(3), if the payment is less than the full amount of required child support and alimony, the partial payment is treated first as nondeductible child support, and any excess is alimony. Thus, the Tax Court disallowed all but $1,381 of the ex-husband's alimony deduction, which was the excess amount over his required child support payment. Joseph L. Becker, TC Summ. Op. 2015-2 (Tax Ct.).
Wednesday, February 4, 2015
Child Support Payments Have Priority over Alimony
According to the terms of his divorce, an ex-husband was required to provide child support payments of $8,307 and alimony payments of $8,205 ($16,512 total) for the year in question. However, he only paid a $9,688 for both child support and alimony that year, claiming the entire amount as alimony. According to IRC Sec. 71(c)(3), if the payment is less than the full amount of required child support and alimony, the partial payment is treated first as nondeductible child support, and any excess is alimony. Thus, the Tax Court disallowed all but $1,381 of the ex-husband's alimony deduction, which was the excess amount over his required child support payment. Joseph L. Becker, TC Summ. Op. 2015-2 (Tax Ct.).
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment