- 5 -
burden of proving that he or she is entitled to the claimed
deduction. See Rule 142(a); New Colonial Ice Co. v. Helvering,
292 U.S. 435, 440 (1934).
Section 6001 requires that a taxpayer liable for any tax
shall maintain such records, render such statements, make such
returns, and comply with such regulations as the Secretary may
from time to time prescribe. To be entitled to a deduction,
therefore, a taxpayer is required to substantiate the deduction
through the maintenance of books and records.
1. Dependency Exemption Deductions
The first issue for decision is whether petitioner is
entitled to the claimed dependency exemption deductions for 1995
and 1996. Section 151(c) allows a taxpayer to deduct an
exemption amount for each dependent, as defined in section 152.
A dependent is defined as an individual, who is either a U.S.
citizen, national, or resident of the United States, over half of
whose support is received from the taxpayer. See sec. 152(a),
(b)(3). In order to qualify as a dependent, an individual must
also be related to the taxpayer in one of the ways enumerated in
section 152(a)(1) through (8). An unrelated individual may also
qualify as a dependent of the taxpayer if, in addition to meeting
the above requirements, the unrelated individual lives with the
taxpayer and is a member of the taxpayer's household throughout
the entire taxable year of the taxpayer. See sec. 152(a)(9);
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011