Michael J. Gentner - Page 4




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               Petitioner was granted a divorce in 1999, but the divorce              
          was appealed by petitioner and his wife.  The current status of             
          the appeal is unknown, but petitioner’s wife has remarried.                 
          Petitioner sees his two youngest children once a month and sees             
          the two older children much less frequently.  He continues to pay           
          support and provide medical insurance for the children; he paid             
          for medical insurance for his wife through 1999.  He has also               
          paid for other expenses for the children over the years,                    
          including clothing expenses.                                                
               Petitioner filed a Federal income tax return for taxable               
          year 1998 with the filing status married filing separately.  For            
          each of his four children, petitioner claimed a dependency                  
          exemption deduction and a child tax credit.  Petitioner reported            
          the following tax liability:                                                
                    Pension and annuity income            $31,246                     
                    Itemized deductions                    (5,214)                    
                    Personal exemption deduction           (2,700)                    
                    Dependency exemption deductions       (10,800)                    
                    Taxable income                         12,532                     
                    Tax from tax tables                     1,879                     
                    Child tax credits                      (1,600)                    
                    Tax                                       279                     
               Only what appears to be the cover sheet from the statutory             
          notice of deficiency, without attachments, was introduced into              
          evidence.  Consequently, we do not have before us the rationale             
          for respondent’s adjustments.  The petition, along with the                 
          parties’ arguments and testimony, center around petitioner’s                
          entitlement to the four dependency exemption deductions.                    






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