- 4 -
substantiate his claims. Respondent has claimed an increased
deficiency in his answer alleging that petitioner is not entitled
to a dependency exemption deduction or a child tax credit for his
daughter.
Discussion
1. Dependency Exemption Deductions2
Section 151(c) allows a taxpayer to deduct an exemption
amount for each "dependent" as defined in section 152. Section
152(a) defines a dependent to include a son or daughter of the
taxpayer, “over half of whose support, for the calendar year in
which the taxable year of the taxpayer begins, was received from
the taxpayer (or is treated under subsection (c) or (e) as
received from the taxpayer)”.
In the case of a child of divorced parents, section
152(e)(1) provides that if a child receives over half of his
support from parents who are divorced under a decree of divorce
and the child is in the custody of one or both of his parents for
more than one-half of the year, then the child will be treated as
receiving over half of his support from the parent having custody
for a greater portion of the calendar year. Section 1.152-4(b),
Income Tax Regs., provides that the term "custody" is "determined
by the terms of the most recent decree of divorce". Because the
2 The Court decides this case without regard to the burden
of proof. Accordingly, the Court need not decide whether current
sec. 7491(a)(1) is applicable in this case. See Higbee v.
Commissioner, 116 T.C. 438 (2001).
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