111 T.C. No. 19
UNITED STATES TAX COURT
PAVEL DOBRA AND ANA DOBRA, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7573-97. Filed December 29, 1998.
H and W owned four residential properties located
in State O. One of the properties was H and W's family
residence. The other three were not. H and W used the
properties to provide residential care for adults.
State O paid H and W for this care. H and W did not
report any of the payments received from State O in
1992 and 1993, on the theory that the payments were
"qualified foster care payments", excluded from gross
income under sec. 131(a), I.R.C. None of the
unreported payments were "difficulty of care payments",
as defined by sec. 131(c), I.R.C.
Held: To be excluded from gross income under sec.
131(a), I.R.C., the payments must be paid for care
provided in "the foster care provider's home" (sec.
131(b)(1)(B), I.R.C.). A house or other dwelling is
"the foster care provider's home", only if the foster
care provider resides there. There is no evidence in
the record that H and W resided in any of the three
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