Hilton H. Hackley - Page 10




                                       - 10 -                                         
          returns.  Similar to mortgage interest deductions, real estate              
          taxes are deductible under section 164(a) only by the person on             
          whom the liability is imposed.  Magruder v. Supplee, 316 U.S.               
          394, 398 (1942); Cramer v. Commissioner, 55 T.C. 1125, 1130                 
          (1971); Manning v. Commissioner, T.C. Memo. 1993-127.  Because we           
          found above that petitioner was not the legal, equitable, or                
          beneficial owner of the LA property, he is also not entitled to             
          Schedule A deductions for real estate taxes paid thereon.                   
          Respondent is sustained on this issue.                                      
          Dependency Exemption                                                        
               Section 151(c) allows a taxpayer to deduct an annual                   
          exemption amount for each dependent of the taxpayer.  As relevant           
          here, a “dependent” is defined in section 152(a) as an individual           
          “over half of whose support, for the calendar year in which the             
          taxable year of the taxpayer begins, was received from the                  
          taxpayer”.  In order to prevail, petitioner must show by                    
          competent evidence:  (1) The total support provided for each                
          individual claimed, and (2) that he provided more than half of              
          such total support.  The amount of total support may be                     
          reasonably inferred from competent evidence.  Stafford v.                   
          Commissioner, 46 T.C. 515, 518 (1966).  However, where the amount           
          of total support of an individual during the taxable year is not            
          shown, and cannot be reasonably inferred from competent evidence,           
          then it is not possible to conclude that the taxpayer has                   






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011