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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.”
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Last modified: May 25, 2011