Stephen James Caputi - Page 3

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          next.2  Petitioner did not maintain a log or any other record               
          pertaining to the time that the children were with him during the           
          year in issue.                                                              
               On his Federal income tax return for 2001, petitioner                  
          claimed a dependency exemption deduction for Thomas.  He also               
          claimed the child tax credit for Thomas and head of household               
          filing status.  Respondent disallowed the dependency exemption              
          deduction, the child tax credit, and determined that petitioner’s           
          correct filing status was single.                                           
                                     Discussion                                       
          A.  Relevant Statutes                                                       
               1.  Dependency Exemption Deduction                                     
               Section 151 provides that an individual taxpayer is allowed            
          to deduct an exemption for personal dependents.  The definition             
          of “dependent” includes a son or daughter of the taxpayer “over             
          half of whose support, for the calendar year * * * was received             
          from the taxpayer”.  Sec. 152(a).  Special rules, however, apply            
          in the case of children of divorced or separated parents.  Sec.             
          152(e).                                                                     
               Prior to 1985, the custodial parent generally was treated as           
          having provided more than half of the support for each minor                


               2  The custody order also provides for the parties to                  
          alternate holidays, to each have one week of uninterrupted                  
          vacation time with the children, and for custody when one of the            
          parties is traveling out of town on business.                               





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