- 4 - equipment of $2,148.69, and unnamed other expenses of $6,241.45, resulting in a net loss of $29,988.10.1 Discussion Because petitioner failed to meet the requirements of section 7491(a), the burden of proof with respect to factual issues relevant to the deficiency does not shift to respondent. As to the accuracy-related penalty, respondent has the burden of production; the burden of persuasion remains with petitioner. See sec. 7491(c); Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001). Dependency Exemption and Head of Household Filing Status A dependency exemption deduction is allowed under section 151(a) for a parent of a taxpayer only if, among other requirements, the taxpayer provides over half of the parent's support for the year. See secs. 151(c) and 152(a)(4). A taxpayer is considered a head of household with respect to a parent only if, among other requirements, the taxpayer maintains a household which constitutes the principal place of abode of that parent, and the taxpayer is entitled to a dependency exemption deduction for the parent for that taxable year. See sec. 2(b)(1)(B). Although the taxpayer is not required to reside with his parents for purposes of section 2(b), he must maintain the household, which means that he must pay more than one-half 1The actual sum of the claimed items is $29,088.10.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011