Rodger L. Smith - Page 4

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          exemption deduction for each qualifying dependent.  A sister or             
          nephew is considered a "dependent" so long as the taxpayer is               
          providing more than half the dependent's support for the taxable            
          year and the dependent's gross income for that year is less than            
          the exemption amount.3                                                      
               Petitioner contends that because he sent checks to his                 
          mother in Columbus, Georgia, to cover the first and second                  
          mortgages on her house and other miscellaneous expenses, he is              
          entitled to claim his sister and nephew as dependents while they            
          are living in his mother's Georgia home.                                    
               Petitioner testified about his financial contributions to              
          his mother that she used throughout the year.  The parties                  
          stipulated that during 1992 petitioner made his mother's monthly            
          mortgage payments of $197.16.  At trial, petitioner testified               

               3Sec. 152(a) defines "dependent" as:                                   
                    (a) * * * any of the following individuals over                   
               half of whose support, for the calendar year in which                  
               the taxable year of the taxpayer begins, was received                  
               from the taxpayer * * *                                                
                         *    *    *    *    *    *    *                              
                         (3) A brother, sister, stepbrother, or                       
                    stepsister of the taxpayer,                                       
                         *    *    *    *    *    *    *                              
                         (6)  A son or daughter of a brother or sister                
                    of the taxpayer,                                                  

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