Frank Planko - Page 5

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          head of household status on his 1998 tax return.  In the notice             
          of deficiency, respondent disallowed the dependency exemption               
          deductions because petitioner failed to establish that he had               
          physical custody of the children for the greater part of the                
          year.  Respondent also disallowed the head of household status              
          because petitioner failed to establish that he maintained a home            
          for himself and a qualifying dependent for more than 6 months               
          during 1998.                                                                
               We decide the deficiency issues in this case on the basis of           
          the evidence in the record without regard to the burden of proof.           
          Accordingly, we need not decide whether section 7491(a)(1) is               
          applicable in this case.  See Higbee v. Commissioner, 116 T.C.              
          438 (2001).                                                                 
          Dependency Exemptions                                                       
               Section 151(c) allows a taxpayer to deduct an annual                   
          exemption amount for each dependent of the taxpayer.  Section               
          152(a)(1) defines the term “dependent” to include a taxpayer’s              
          child, provided that more than half of the child’s support was              
          received from the taxpayer during the calendar year.  However,              
          special rules apply in the case of a child of divorced parents.             
          See sec. 152(e).                                                            
               Pursuant to section 152(e)(1), if a child receives more than           
          half of his support during the calendar year from divorced                  
          parents, and such child is in the custody of one or both parents            





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