Preston v. Commissioner
Payments must terminate upon payor’s death to be deductible. If state law automatically terminates payments upon death, the document need not expressly so state.
Hovis v. Hovis
A divorcing spouse’s potential tax liability may be considered in valuing marital assets only where such liability is reasonably ascertainable.
Matlock v. Matlock
Where there was no evidence that a sale of the family business (a car dealership) was pending, it was error to value the business by deducting the capital gains tax which would be incurred upon a sale.
In Re Marriage of Friedman
Where there was no evidence that a sale of the family business (a car dealership) was pending, it was error to value the business by deducting the capital gains tax which would be incurred upon a sale.
Arnes v. U.S.
Redemption by a corporation of wife’s stock, which was jointly held by divorcing spouses, is not a taxable event.
Heller v. Commissioner
Divorce instrument which reduces future spousal support by any court ordered increase in child support does not constitute a contingency related to a child.
Friedman v. Commissioner of Internal Revenue
Innocent spouse rule applies to taxpayer who was aware of tax shelter that gave rise to improper deduction, but did not understand their implications.
Matter of Marriage of Drews
Discounting value of husband’s pension by 40% for future income tax liability is affirmed as expert testified that tax rates of individuals in economic circumstances like the husband (a dentist) usually remained the same upon retirement.
Marlin G. Springer v. CIR
Annual Payments were deductible as alimony even though divorce decree was silent on whether liability would survive death of the payee. If the instrument is not clear, whether liability terminates at death is determined by operation of state law.
Shuck v. Shuck
No discount for potential capital gains for business as there was no evidence of a sale in the near future.