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7703(b).
The costs of maintaining a household are the expenses
incurred for the mutual benefit of the occupants, such as
“property taxes, mortgage interest, rent, utility charges, upkeep
and repairs, property insurance, and food”. Sec. 1.7703-1(b)(4),
Income Tax Regs. Specifically, if a taxpayer does not own or pay
the rent for a house, he or she is not maintaining a household.
Keegan v. Commissioner, T.C. Memo. 1997-511.4
Mrs. Pelayo did not substantiate that she paid more than
half of the costs of the Fifth Street residence.5 Mrs. Pelayo
submitted copies of utility bills she paid; Mr. Pelayo, however,
paid the monthly rent and advanced money every week to her for
household expenses. Based on the evidence before us, we conclude
that Mrs. Pelayo did not provide more than half of the cost of
maintaining the household. As a result, under section 7703(b)
Mrs. Pelayo was married in 1998 and is not entitled to head of
household filing status. Respondent’s determination that Mrs.
Pelayo’s proper filing status for 1998 is married filing separate
4 In Keegan v. Commissioner, T.C. Memo. 1997-511, this Court
considered the taxpayer’s qualification to file under the head of
household status. Section 2(b) provides that “an individual
shall be considered as maintaining a household only if over half
of the cost of maintaining the household during the taxable year
is furnished by such individual.” Due to the similar language in
secs. 2(b) and 7703(b)(2), we find this case applicable here.
5 Sec. 7491(a), concerning burden of proof, has no bearing on
the underlying issue.
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