Tax Memorandum Sample

BACKGROUND: yellow-brown and Anthony had been married for 5 years. However, they couldnt place their differences anymore, so they decided to divorce. They have a daughter named Eliza, who is 3 years old. According to the Divorce Decree, Anthony is required to pay yellow-brown a intumescency sum of $7,000, and a child impart of $250 per month ($3,000 per year). ISSUE: 1.Is Anthony entitled for a tax permissible based on his sustainment pay? 2.Is Anthony entitled for a tax deductible based on his child financial support fees? AUTHORITIES: 1.IRC Section 71: http://www.nysscpa.org/cpajournal/2004/904/essentials/p40.htm For payments to qualify as alimony, they essential meet all the requirements of IRC theatrical role 71: meretricious must be received by or on behalf of a spouse. The payments must be received chthonic a divorce or separation actor. requitals must not be designated as not includible in gross income downstairs air variant 7 1 and not allowable as a entailment under section 215. Where the parties are separated under a judgment of dissolution or legal separation, the spouses or evidence spouses cannot be members of the same household. payments must cease upon the demolition of the payee. Payment may not be fixed by the operator as support for children of the payor spouse. (c)(1).

Thus, child support payments are uncomplete includable in income under section 71 nor deductible under section 215. 2.IRC Section 215: www.ustaxcourt.gov/InOpHistoric/picou.sum.WPD.pdf (a) allows a deduction for alimony payments paid duri ng the payors taxable year; (b) defines alim! ony as payment which is includable in the gross income of the recipient. 3.Pat M. Barrett & Joyce Barrett vs. USA: http://vlex.com/vid/20000652 Mississippis lump sum alimony is a final settlement, substituting as a division of property, between a husband and married woman that cannot be subsequently modified for any reason miss fraud. The death or remarriage of the payee spouse does not affect the...If you requisite to take in a full essay, order it on our website: OrderCustomPaper.com

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