Payments that are considered alimony can be deducted. However, any payments that are considered property settlements or child support are not deductible.
Given the fact that your payments are not being made to your wife and that the payments are for the purchase of an asset, the IRS may look to classify the payments as a property
The IRS provides the following requirements for payments to be treated as a alimony:
- The spouses don't file a joint return with each other;
- The payment is in cash (including checks or money orders);
- The payment is to or for a spouse or a former spouse made under a divorce or separation instrument;
- The divorce or separation instrument doesn't designate the payment as not alimony;
- The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.);
- There's no liability to make the payment (in cash or property) after the death of the recipient spouse; and
- The payment isn't treated as child support or a property settlement.
