Par. 3. Section 1.152-3, as proposed to be revised by 82 FR 6370, January 19, 2017, is amended by: a. Adding paragraph (c)(3); and b. Revising paragraph (d)(2). The addition and revision read as follows:
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(c) * * *
(3)(i) For tax year 2018, the exemption amount under section 152(d)(1)(B) is $4,150.
For tax years 2019 through 2025, the exemption amount, as adjusted for inflation, is set forth in annual guidance published in the Internal Revenue Bulletin. See § 601.601(d)(2) of this chapter.
(ii) Paragraph (c)(3)(i) of this section applies to taxable years ending after August 28, 2018.
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(d) * * *
(2) Certain income of a taxpayer's spouse. A payment to a spouse (payee spouse) of alimony or separate maintenance is not treated as a payment by the payor spouse for the support of any dependent. Similarly, the distribution of income of an estate or trust to a divorced or legally separated payee spouse is not treated as a payment by the payor spouse for the support of any dependent. The preceding sentence shall not apply, however, to the extent that such a distribution is in satisfaction of the amount or portion of income that, by the terms of a divorce decree, a written separation agreement, or the trust instrument is fixed as payable for the support of the minor children of the payor spouse.
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