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We observe that there is no evidence in the record that
petitioner was employed by anyone but himself. Petitioner had no
Forms W-2 for either year in issue. We find that petitioner's
net earnings from self-employment exceeded $400 during each year
in issue. Accordingly, we hold that petitioner is subject to
self-employment taxes on his earnings during 1993 and 1994.
We sustain respondent's determination that petitioner's
liability for self-employment tax for 1994 is $1,159. Respondent
has conceded that petitioner's liability for self-employment tax
for 1993 should be reduced to $676. Petitioner will be entitled
to deduct one-half of his self-employment taxes under section
164(f).
In his amended petition, petitioner states that he is
entitled to a dependency exemption deduction for his eldest son
for both years in issue. Section 151(c) allows a taxpayer to
deduct an exemption amount for each dependent as defined in
section 152. As relevant in the instant case, a dependent is
generally defined as a son of the taxpayer over half of whose
support was received from the taxpayer in the calendar year in
which the taxpayer's taxable year begins. Sec. 152(a)(1).
Because petitioner failed to prove that he provided more than
half of the support of his eldest son in 1993 or in 1994, we rule
for respondent on this issue.
To reflect the foregoing,
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