- 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