- 16 - activities, respondent has pointed to likely sources of taxable income. At trial, petitioner neither provided documentary evidence of the loans from Mrs. Berry or Mr. Peavy nor called them to testify regarding those loans. Accordingly, petitioner has failed to prove that the funds used to pay the excess of expenses over known income are from a nontaxable source. Consequently, respondent's position regarding petitioner's unreported income is sustained. Dependent Exemptions Petitioner claimed a personal exemptions on behalf of Jasmine and Brandy Wilson as dependents on both her 1993 and her 1994 returns. Respondent denied the exemptions. Section 151 allows a taxpayer to claim an exemption for each dependent. Section 152 defines a dependent as: 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 (or is treated under subsection (c) or (e) as received from the taxpayer): * * * * * * * (9) An individual (other than an individual who at any time during the taxable year was the spouse, determined without regard to sec. 7703, of the taxpayer) who, for the taxable year of the taxpayer, has as his principal place of abode the home of the taxpayer and is a member of the taxpayer's household. A taxpayer claiming an exception for a dependent bears the burden of showing that the support he provided to the dependent constituted more than one-half of the total support of thePage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011