Ranbir Singh and Balvinder Kaur - Page 5

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               Petitioners are not entitled to a child care credit in                 
          either of the years in issue.  First, Balvinder was the main care           
          provider for the children, and Jagdish assisted her only during             
          the periods of time she was in the country.  Second, petitioners            
          have not shown that they paid any child care expenses other than            
          the expenses incurred in connection with Jagdish.  These are                
          clearly personal and family expenses and as such are not                    
          deductible pursuant to section 262(a).  Finally, the false                  
          information provided on each of the returns for the years in                
          issue--with an identical amount of expenses in each year which              
          was just enough to provide petitioners with the maximum allowable           
          credit--persuades us that the alleged expenses had no connection            
          with any services provided by Jagdish.                                      
               The second issue for decision is whether petitioners are               
          entitled to a dependency exemption deduction for Heche in 1997.             
          Subject to limitations not applicable here, a deduction is                  
          allowed under section 151(a) for each dependent of a taxpayer.              
          Sec. 151(a) and (c)(1).  A taxpayer’s child is a dependent of the           
          taxpayer only if the taxpayer provides over half of the child’s             
          support for the taxable year.  Sec. 152(a)(1).                              
               Heche was in foster care throughout all of 1997 and,                   
          although petitioners made payments for her support after that               
          year, they made no such payments in the year in issue.  We                  

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