Shapiro v. Commissioner

1979 T.C. Memo. 427, 39 T.C.M. 362, 1979 Tax Ct. Memo LEXIS 97
CourtUnited States Tax Court
DecidedOctober 15, 1979
DocketDocket No. 6083-76.
StatusUnpublished

This text of 1979 T.C. Memo. 427 (Shapiro v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shapiro v. Commissioner, 1979 T.C. Memo. 427, 39 T.C.M. 362, 1979 Tax Ct. Memo LEXIS 97 (tax 1979).

Opinion

HOWARD SHAPIRO, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Shapiro v. Commissioner
Docket No. 6083-76.
United States Tax Court
T.C. Memo 1979-427; 1979 Tax Ct. Memo LEXIS 97; 39 T.C.M. (CCH) 362; T.C.M. (RIA) 79427;
October 15, 1979, Filed
Edward Mendlowitz , for the petitioner.
William F. Halley, for the respondent.

WILBUR

MEMORANDUM OPINION

WILBUR, Judge: Respondent determined a deficiency of $9,744 in petitioner's income tax for 1973. Some adjustments have been conceded by petitioner. The sole remaining issue is whether petitioner is entitled, under section 215 1 to deduct support payments made to his wife during a period of separation prior to divorce.

This case was submitted for decision without trial pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.

Howard Shapiro (hereinafter referred to as petitioner) filed a timely income tax return with the Internal Revenue Service for the taxable year 1973. During 1973, petitioner was employed as a salesman. At the time of the commencement of this action, petitioner's legal residence was New York, New York.

Around April*99 of 1972 petitioner voluntarily separated from his wife, Salome Shapiro (hereinafter referred to as Mrs. Shapiro). On September 22, 1972, Mrs. Shapiro instituted an action against petitioner for a decree of divorce in the Supreme Court of the State of New York. The divorce was finally granted in December of 1974.

Throughout 1973, the year in issue, petitioner continued to live apart from his wife and their two minor children, Daniel and Sabina. Prior to 1973, petitioner orally agreed to pay his wife $325 a week to support her and the children pending the final decree of divorce. No written separation agreement was ever entered into between petitioner and Mrs. Shapiro.

Despite the support payments, on December 20, 1972, Mrs. Shapiro made a motion before the state court for alimony, child support, and other relief pendentelite. Her request included:

(a) Alimony of $350 weekly;

(b) Child support of $700 weekly;

(c) Medical and dental expenses of $579;

(d) Tuition and educational expenses, Daniel, of $660;

(e) Tuition expenses, Sabina, of $900;

(f) Gardening and home maintenance expenses of $650, and

(g) Expense of a new car of $5,000.

On February 7, 1973, Honorable*100 Martin Evans of the Supreme Court of the State of New York issued an order denying Mrs. Shapiro's motion in all respects. The court stated that the denial was issued

[On] the grounds that the payments which defendant is making to support his family including the tuition for his son together with the income and substantial savings of the plaintiff demonstrate a lack of necessity for pendentelite financial relief * * *.

Petitioner continued to make support payments totalling $16,250 to his wife and children during 1973. On his Federal income tax return for that year, he took a deduction for the payments as alimony. 2 The precise issue before us is whether the deduction is allowable under section 215 3 of the Code as "amounts includable under section 71 in the gross income of the wife." Accordingly, the issue will be resolved by our determination as to whether the payments come within the confines of section 71, and in particular, the limitation of section 71(a)(3) 4 that they be "received * * * under a decree * * * requiring the husband to make the payments for her support or maintenance."

*101 Petitioner contends that the payments do fulfill the requirements of section 71(a)(3) and hence, are deductible as alimony. He argues that the state court's order was a "decree for support" within the meaning of section 71(a)(3) because the rationale behind the decision was that the payments that petitioner was already making plus the income and savings of Mrs. Shapiro were sufficient for her support. On the other hand respondent argues that the payments were voluntary payments and that the order of February 7, 1973, was simply a denial of a request for temporary alimony and child support -- not an affirmative decree requiring petitioner to pay a specific sum of alimony to his wife, and thus not within the contours of section 71(a)(3). We agree with respondent.

The law is well settled on this issue. In order for a husband to be able to deduct support payments as alimony, the payments must be includable in his wife's income under section 71. From the stipulated facts, it is clear that in 1973 there was neither a decree for divorce nor a written separation agreement, and so sections 71(a)(1) and 71(a)(2) are inapplicable. Therefore, petitioner relies on section 71(a)(3), captioned*102 "DECREE FOR SUPPORT." His reliance, however, is misplaced. Section 71(a)(3) and the regulations promulgated thereunder clearly delineate what is required to come within the section. Regulation section 1.71-1(b) states in pertinent part:

(3) Decree for support. (i) Where the husband and wife are separated and living apart and do not file a joint income tax return for the taxable year, paragraph (3) of section 71(a) requires the inclusion in the gross income of the wife of periodic payments (whether or not made at regular intervals) received by her after August 16, 1954, from her husband under any type of court order or decree (including an interlocutory decree of divorce or a decree of alimony pendente lite) entered after March 1, 1954, requiring the husband to make payments for her support or maintenance. * * *

* * *

(4) Scope of section 71(a).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Taylor v. Commissioner
55 T.C. 1134 (U.S. Tax Court, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
1979 T.C. Memo. 427, 39 T.C.M. 362, 1979 Tax Ct. Memo LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shapiro-v-commissioner-tax-1979.