Andre L. Wilson - Page 6

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          contrary evidence were submitted’”.2  Baker v. Commissioner, 122            
          T.C. 143, 168 (2004) (quoting Higbee v. Commissioner, 116 T.C.              
          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                                      
               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 “An individual *            
          * * who, for the taxable year of the taxpayer, has as his                   
          principal place of abode the home of the taxpayer and is a member           
          of the taxpayer’s household * * * over half of whose support, for           

          2We interpret the quoted language as requiring the                          
          taxpayer’s evidence pertaining to any factual issue to be                   
          evidence the Court would find sufficient upon which to base a               
          decision on the issue in favor of the taxpayer.  See Bernardo v.            
          Commissioner, T.C. Memo. 2004-199.                                          

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