Waylon D. Ary - Page 5




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               Petitioner timely filed a U.S. Individual Income Tax Return,           
          Form 1040A, for 1998.  On his return, petitioner designated his             
          filing status as “single”, and he claimed (1) deductions for                
          dependency exemptions for Corey and Danan and (2) an $800 child             
          tax credit in respect of Corey and Danan.  Petitioner did not               
          attach to his return Form 8332, Release of Claim to Exemption for           
          Child of Divorced or Separated Parents, or any other declaration            
          or statement from Ms. Ary agreeing not to claim exemptions for              
          Corey and Danan on her return for the year in issue.  In this               
          regard, petitioner testified that Ms. Ary expressly refused to              
          sign any such form, declaration, or statement.                              
               At trial, petitioner testified that he thinks Ms. Ary                  
          claimed Corey and Danan as dependents on her income tax return              
          for 1998.                                                                   
          Discussion2                                                                 
               A.  Deductions for Dependency Exemptions                               
               Section 151(a) authorizes deductions for the exemptions                
          provided by that section.  In particular, section 151(c)(1)                 
          provides an exemption for each of a taxpayer’s dependents as                
          defined in section 152.                                                     
               Section 152(a)(1) defines the term “dependent” to include a            


               2 We decide the issues in this case without regard to the              
          burden of proof.  Accordingly, we need not decide whether the               
          general rule of sec. 7491(a)(1) is applicable in this case.  See            
          Higbee v. Commissioner, 116 T.C. 438 (2001).                                





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