Case Name: BUDD v. COMMISSIONER OF INTERNAL REVENUE
Court: United States Court of Appeals for the Sixth Circuit
Jurisdiction: United States
Decision Date: 1947-05-05
Citations: 177 F.2d 198
Docket Number: No. 10406
Parties: BUDD v. COMMISSIONER OF INTERNAL REVENUE.
Judges: Before HICKS, SIMONS and ALLEN, Circuit Judges.
Reporter: Federal Reporter 2d Series
Volume: 177
Pages: 198–198

Head Matter:
BUDD v. COMMISSIONER OF INTERNAL REVENUE.
No. 10406.
United States Circuit Court of Appeals Sixth Circuit.
May 5, 1947.
T. G. Thompson, Cleveland, Ohio, Way-land K. Sullivan, Cleveland, Ohio, for petitioner.
Douglas W. McGregor, J. P. Wenchel, Sewall Key, John W. Smith, Helen R. Car-loss and Muriel S. Paul, Washington, D. G, for respondent.
Before HICKS, SIMONS and ALLEN, Circuit Judges.

Opinion:
PER CURIAM.
The question here is whether in re-computing the income of the petitioner for the taxable year ending December 31, 1943, the respondent rightly included in the petitioner's income the sum of $2400 out of $6,000 deducted by the petitioner as alimony payments under a separation agreement between the petitioner and his wife, in view of the language of § 22(k) of the Internal Revenue Code, 26 U.S.C.A. § 22(k), and Regulation 111, § 29.22(k)-1(d).
Section 22 (k) provides- in substance that alimony payments constitute taxable income of the wife but that the subsection does not apply to any periodic payments which the terms of the decree- or written instrument fix as a sum which: is- payable for the support of minor children. We agree with the Tax Court that in considering the separation instrument as a; whole it becomes clear that of the $6,000'- paid to the wife for the taxable year, a> minimum of $200 per month is earmarked for the support of the petitioner's minor son.
Wherefore, the decision of the-Tax Court sustaining the deficiency assessment of the respondent is hereby affirmed' upon the reasoning of the Tax Court's opinion.