Printer Friendly
The Free Library
4,487,640 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

Man deducts alimony in annulment.


* Before the end of the six-month waiting period required by the divorce decree in his first marriage, Fred J. Pettid married for the second time. Ten years later, he attempted to void the marriage to his second wife. She countered his suit for annulment by charging him with fraud, breach of promise breach of promise n. historically the dumping of a female fiancee by her intended husband after he had proposed marriage and she had accepted. She was entitled to file a suit for damages for the embarrassment of the broken engagement. Such lawsuits were gradually outlawed in various states and no longer exist. (See: breach) and intentional infliction of emotional distress.

Eventually, the Pettids, who had married in the state of Nebraska, settled the suit and the marriage was annulled. He agreed to give her various properties and to pay her $4,000 per month for 84 months.

When Pettid deducted the payments as alimony
Alimony
Payments made to a spouse or former spouse under a separation or divorce agreement.

Notes:
For the receiver, payments are considered taxable income for the payer, they are a deductible expense.
See also: Deduction, Income, Income Tax
 on his individual tax return, the IRS disallowed the deductions, saying the payments were nondeductible damages. In its ruling, the Tax Court held for Pettid, saying a man could deduct alimony paid to a woman to whom he was never legally married. The court's ruling was influenced by Nebraska law, which made little distinction between divorces and annulments (Fred J. Pettid v. Commissioner, TC Memo 1999-126).

--Michael Lynch, CPA, Esq., professor of tax accounting at Bryant College, Smithfield, Rhode Island.
COPYRIGHT 1999 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Author:Lynch, Michael
Publication:Journal of Accountancy
Geographic Code:1USA
Date:Sep 1, 1999
Words:182
Previous Article:Lawyer's workpapers are discoverable.
Next Article:Unclaimed property audits.(state escheat law)(from The Tax Adviser)
Topics:



Related Articles
Nonresidents entitled to deduct alimony payments.
Cash payments to former spouse not alimony.
"Pension" payments made by dissolved corporation in satisfaction of shareholder's alimony obligations were not deductible.(Tax Court memorandum...
Annulments again.(Brief Article)
Nondeductible alimony.
Court says unallocated support payments are alimony.(Tax Court memo)
Property settlement payment not deductible alimony.
Alimony payments must terminate at death.
Are substitute payments alimony?(Okerson v. Commissioner)
What makes it alimony?

Terms of use | Copyright © 2008 Farlex, Inc. | Feedback | For webmasters | Submit articles