Be sure to download the materials from http://edzollars.com/2005-12-03_Alimony_Defintion.pdf.

This week's podcast deals with the tax issues related to alimony, and looks at two recent cases where taxpayers lost in their attempts to get certain payments treated as alimony. In one case (D.E. Lofstrom, 125 T.C. No. 13) the taxpayer attempted to claim an alimony deduction on the transfer of a note receivable from a third party.

In the second case (D.K. Vanarsdall, T.C. Summary Opinion 2005-170) the taxpayer attempted to get the court to count as alimony payments the decree stated were not alimony because the statement did not spell out the matter exactly as Section 71 provides for disqualifying an otherwise qualified payment from alimony treatment.

In both cases, the taxpayer lost. In this podcast we look at the general issues surrounding alimony payments, and what you need to look for when dealing with a client who is either going through a divorce or who comes to you after the fact with a signed and sealed divorce decree.

While I was able to record the podcast back in Phoenix, I'm posting the materials while in Tulsa, Oklahoma from the 2005 Oklahoma Tax Institute put on by the Oklahoma Society of CPAs. I'll be back in Phoenix next week before flying out one final time this year for a presentation in Columbus, Ohio at the Ohio State and Federal Tax Conference on December 15. There I will be giving a three hour presentation on federal tax developments during 2005.

As always, if you comments on the podcast feel free to click the comment link below and leave your comments or discussions.