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438, 442 (2001)). Section 7491(a)(1) applies only if the
taxpayer complies with substantiation requirements, maintains all
required records, and cooperates with the Commissioner for
witnesses, information, documents, meetings, and interviews.
Sec. 7491(a)(2). Although neither party alleges the
applicability of section 7491(a), we conclude that the burden of
proof has not shifted to respondent with respect to any of the
issues in the case at bar.
Moreover, deductions are a matter of legislative grace and
are allowed only as specifically provided by statute. INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice
Co. v. Helvering, 292 U.S. 435, 440 (1934).
1. Deduction for Dependency Exemption
As previously stated on his 2002 Federal income tax return,
petitioner claimed a dependency exemption deduction for KH, which
respondent disallowed.
Section 151 allows deductions for exemptions for dependents
of the taxpayer. See sec. 151(c). Section 152(a) defines the
term “dependent”, in pertinent part, to include a son or daughter
of the taxpayer over half of whose support for the calendar year
was received from the taxpayer. “[S]upport” includes “food,
shelter, clothing, medical and dental care, education, and the
like.” Sec. 1.152-1(a)(2)(i), Income Tax Regs.
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