Exclusion & Deduction: Taxpayer Knocks Out Commissioner
In its interesting October 4, 2021 decision in Charles H. Leyh v. Commissioner of the Internal Revenue Service, the tax court decided in favor of the taxpayer and concluded the paying spouse could both exclude from income health insurance premiums deducted from payroll under a cafeteria plan and deduct as alimony the portion of those premiums covering the recipient spouse pursuant to a pre-2019 pendente lite agreement.