Page:United States Statutes at Large Volume 98 Part 1.djvu/843

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 795

"Sec. 1041. Transfers of property between spouses or incident to divorce." (d) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to transfers after the date of the enactment of this Act in taxable years ending after such date.

26 USC I04i

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(2) ELECTION TO HAVE AMENDMENTS APPLY TO TRANSFERS AFTER

1983.—If both spouses or former spouses make an election under this paragraph, the amendments made by this section shall apply to all transfers made by such spouses (or former spouses) after December 31, 1983. (3) EXCEPTION FOR TRANSFERS PURSUANT TO EXISTING DE-

CREES.—Except in the case of an election under paragraph (2), the amendments made by this section shall not apply to transfers under any instrument in effect on or before the date of the enactment of this Act unless both spouses (or former spouses) elect to have such amendments apply to transfers under such instrument. (4) ELECTION.—Any election under paragraph (2) or (3) shall be made in such manner, at such time, and subject to such conditions, as the Secretary of the Treasury or his delegate may by regulations prescribe. SEC. 422. TAX TREATMENT OF ALIMONY AND SEPARATE MAINTENANCE PAYMENTS. (a) GENERAL RULE.—Section 71 (relating to alimony and separate

maintenance payments) is amended to read as follows: "SEC. 71. ALIMONY AND SEPARATE MAINTENANCE PAYMENTS. "(a) GENERAL RULE.—Gross income includes amounts received as alimony or separate maintenance payments.

26 USC 71.

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"(b) ALIMONY OR SEPARATE MAINTENANCE PAYMENTS DEFINED.—

For purposes of this section— "(1) IN GENERAL.—The term 'alimony or separate maintenance payment' means any payment in cash if— spouse under a divorce or separation instrument, "(B) the divorce or separation instrument does not designate such payment as a payment which is not includible in gross income under this section and not allowable as a deduction under section 215, "(C) in the case of an individual legally separated from his spouse under a decree of divorce or of separate mainte^ ^ nance, the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and "(D) there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment (in cash or property) as a ' substitute for such payments after the death of the payee spouse (and the divorce or separation instrument states that there is no such liability). "(2) DIVORCE OR SEPARATION INSTRUMENT.—The term 'divorce or separation instrument' means— "(A) a decree of divorce or separate maintenance or a written instrument incident to such a decree, "(B) a written separation agreement, or
 * (A) such payment is received by (or on behalf of) a

Post, p. 797.

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