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Petitioner and Ms. Cornea entered into a Decree of Divorce
(Decree) in the District Court of the Third Judicial District for
Salt Lake County, Utah, on December 8, 1998. In the Decree,
petitioner and Ms. Cornea agreed that petitioner would be awarded
custody3 of two of the children, including C.D., and Ms. Cornea
would be awarded custody of two other children, including S.D. A
fifth child was no longer a minor at the time of the divorce.
The Decree included several pages outlining the exact dates each
child would spend with both petitioner and Ms. Cornea, resulting
in an almost equal share of physical custody.
With respect to dependency exemptions for tax purposes, the
parties agreed that each was entitled to the dependency
exemptions for the children they received custody of; however,
the Decree further provided that petitioner could “purchase” a
dependency exemption for either of the children in Ms. Cornea’s
custody for a specific tax year, if needed. To do so, petitioner
was required to pay Ms. Cornea “the difference in her income tax
obligations when taking the exemptions and when not taking the
exemptions”. Petitioner testified that he paid Ms. Cornea $500
in 2002 for the dependency exemption for S.D.
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent, as defined in section 152.
3Although petitioner had legal custody of C.D., petitioner
and Ms. Cornea equally shared his physical custody.
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Last modified: May 25, 2011