Lebeau v. C.I.R., 061280 FEDTAX, 7398-78

Docket Nº:7398-78, 8182-78.
Opinion Judge:FEATHERSTON, Judge:
Party Name:WILLIAM LEBEAU, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent MARION LEBEAU, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:Maurice A. Nernberg, Jr, for petitioner in docket No. 7398-78. Edward F. Peduzzi, Jr., for the respondent.
Case Date:June 12, 1980
Court:United States Tax Court

40 T.C.M. (CCH) 461

WILLIAM LEBEAU, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

MARION LEBEAU, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

Nos. 7398-78, 8182-78.

United States Tax Court

June 12, 1980

Maurice A. Nernberg, Jr, for petitioner in docket No. 7398-78.

Robert F. Wagner and Henry E. Rea. Jr., for petitioner in docket No. 8182-78.

Edward F. Peduzzi, Jr., for the respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION

FEATHERSTON, Judge:

In these consolidated cases, respondent determined deficiencies in petitioners' Federal income taxes for 1975 as follows:

William Lebeau $9,706.48
Marion Lebeau $4,093.30
The deficiency determinations are alternative in the sense that petitioner William Lebeau (William) has claimed deductions under section 215[1] for sums made available to his former wife, petitioner Marion Lebeau (Marion), and she did not report those sums as income under section 71(a). If Marion is taxable on such sums, corresponding amounts are deductible by William. Concessions having been made, the issues remaining for decision are: 1. Whether certain payments made by William to or on behalf of Marion are includable in her income under section 71(a) and deductible by William under section 215. 2. Whether rental receipts generated by property held by petitioners as tenants in the entirety are includable in Marion's income and deductible by William. FININGS OF FACT Some of the facts have been stipulated. At the time of filing their petitions, William resided in Waco, Texas, and Marion resided in Pittsburgh, Pennsylvania. William filed with the Internal Revenue Service Center, Philadelphia, Pennsylvania, his 1975 Federal income tax return claiming the status of ‘ married filing separately.’ Marion did not file an individual return for 1975. William and Marion were married on December 28, 1947. During their marriage, they had one daughter and one son. They separated in May 1972. On October 11, 1972, William initiated an action for divorce. On December 10, 1973, Marion instituted an action requesting support for herself and their minor daughter. A hearing was held on February 19, 1974, before the Family Division of the Court of Common Pleas of Allegheny County, Pennsylvania (sometimes hereinafter the court). During that hearing, counsel for William and Marion read into the official court transcript an agreement stating that William would pay $1,224 per month to Marion. This sum was the difference between the $555 she was collecting as rents from an apartment house held by them as tenants by the entireties and the amount she requested in her petition. This agreement was not in writing except as it appeared in the court transcript. Subsequently, William became delinquent in making payments under the agreement, and Marion instituted an action in the Allegheny County Court of Common Pleas by filing a ‘ Petition to Enforce Support Agreement.’ The petition recounted the February 19, 1974, proceeding, alleging that William and Marion had agreed on a settlement in open court and that ‘ such agreement is a matter of record in this Court.’ The petition further alleged: That the settlement made between the parties hereto provided, inter alia, that defendant would pay to the plaintiff, as support for his wife and minor child, the sum of One Thousand Two Hundred Twenty-four ($1,224.00) Dollars per month, commencing as of February 20, 1974. The petition further alleged that William was indebted to Marion in the amount of $4,896. On July 30, 1974, the court entered an order, returnable August 13, 1974, stating, in part, that- a rule is hereby granted on the defendant to show cause why the terms of the settlement agreement should not be enforced and judgment entered against defendant in the sum of Four Thousand Eight Hundred Ninety-six ($4,896.00) Dollars. On September 30, 1974, the court entered an order for support ‘ based upon the hearing and agreement made in open court’ on February 19, 1974. Commencing September 21, 1974, William was required by this order to pay $1,224 per month to Marion and their daughter, Carolyn. The order also required William to pay certain arrearages and real estate taxes. The order further stated: 4. The defendant shall be responsible for and shall pay all medical ecpenses incurred by the plaintiff or by their...

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