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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 present case.
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
At issue are the dependency exemption deductions claimed by
petitioner for DD.
Section 151 allows deductions for exemptions for dependents
of the taxpayer. See sec. 151(c). Section 152(a) defines the
term “dependent” to mean a child of the taxpayer over half of
whose support for the year was received from the taxpayer.
Section 152(b)(2) provides that a foster child shall be treated
as a child of the taxpayer, if such child satisfies the
requirements of section 152(a)(9). That section requires that
the child be:
(9) An individual (other than an individual who at any
time during the taxable year was the spouse, determined
without regard to section 7703, of the taxpayer) 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.
“[S]upport” includes “food, shelter, clothing, medical and
dental care, education, and the like.” Sec. 1.152-1(a)(2)(i),
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