- 6 - Discussion A. Dependency Exemptions for Kimberly and Michelle As relevant herein, a taxpayer is entitled to dependency exemptions for his daughters if more than half of their support is furnished by the taxpayer. See secs. 151(c) and 152(a)(1). In the case of children whose parents are either divorced or separated or who live apart at all times during the last 6 months of the calendar year, section 152(e)(1) provides that the custodial parent; i.e., the parent having custody for a greater portion of the calendar year, is deemed to provide more than half of the children’s support for such year.4 For purposes of this rule, and as relevant herein, “custody” is determined by the terms of the most recent decree of divorce or separate maintenance, or subsequent custody decree. Sec. 1.152-4(b), Income Tax Regs. In the present case, Ms. Phillips had legal custody of Kimberly and Michelle for a greater portion of 1997 by virtue of the September 1996 order of the Duval County court.5 Accordingly, Ms. Phillips is considered to be the custodial 4 Exceptions to the general rule of sec. 152(e)(1) are not applicable in the present case. See sec. 152(e)(2), (3), and (4). 5 Indeed, at trial petitioner admitted that Ms. Phillips “had the legal custody from the end of the summer of ‘96 until Sept. 5, 1997.”Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011