Randall Albert Fritscher - Page 7




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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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