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cost of maintaining the household during the taxable year is
furnished by such taxpayer. Sec. 2(b)(1). “The cost of
maintaining a household shall be the expenses incurred for the
mutual benefit of the occupants thereof by reason of its
operation as the principal place of abode of such occupants for
such taxable year.” Sec. 1.2-2(d), Income Tax Regs. The
expenses of maintaining a household include rent and food
consumed on the premises, but does not include the cost of
clothing, education, medical treatment, vacations, life
insurance, transportation, or any amount which represents the
value of services rendered in the household by the taxpayer. Id.
During the year in issue, petitioner was not married to Mr.
Cantrell and was not a surviving spouse. Petitioner also
maintained a household within the meaning of section 2(b)(1).
During 2001, there were four sources of funds to maintain
petitioner’s household: (1) Petitioner’s wages of $25,661 for
the year; (2) Section 8 housing subsidy of $825 per month or
$9,900 for the year; (3) child support from Mr. Cantrell of $370
every 2 weeks or $9,620 for the year; and (4) rent reduction of
$100 per month or $1,200 for the year because of her watching the
property on behalf of the landlord.
From a review of the entire record, we are satisfied that
petitioner furnished over half of the cost of maintaining a
household in 2001. Petitioner’s wages alone exceeded all other
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