Opinion ID: 746472
Heading Depth: 3
Heading Rank: 1

Heading: Payments made in 1988

Text: 5 The Tax Court held that the payments Edward made in 1988 were pursuant to a written separation agreement under the version of I.R.C. § 71(a)(2) in effect at the time of the making of the 1983 agreement. Under § 71(a)(2), because the payments were made pursuant to such an agreement, they were included in Irene's gross income. The court held that it was immaterial that the agreement was later held invalid by the Illinois appellate court. Treasury Regulation § 1.711(b)(2)(i) provides that payments are includible in the wife's gross income whether or not the agreement is a legally enforceable instrument. Therefore, the court held, Irene's gross income included Edward's payments to her, and Edward could deduct them under I.R.C. § 215.