Norma K. Litton - Page 6

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               The Standard Possession Order was in effect during the 2003            
          calendar year.  Petitioner and Mr. Litton together provided more            
          than half of the support for the children in 2003, and the                  
          children were in the custody of both parents for more than half             
          of the year.                                                                
               Petitioner timely filed a Federal income tax return (Form              
          1040) for 2003.  On her return, petitioner claimed dependency               
          exemption deductions for her two children and the child tax                 
               In the notice of deficiency, respondent disallowed the                 
          dependency exemption deductions “since another taxpayer has also            
          claimed this dependent on their tax return.”4  Respondent also              
          disallowed the child tax credit on the ground that petitioner was           
          not entitled to claim the children as dependents.                           
               A.  Dependency Exemption Deduction                                     
               In general, a taxpayer may deduct an exemption for a                   
          dependent, such as a taxpayer’s child, over half of whose support           
          is provided by the taxpayer.  Secs. 151(a), (c)(1), 152(a).  An             

               4  At trial, Mr. Litton testified that he claimed dependency           
          exemption deductions for his son and daughter on his 2003 return.           
          The record suggests that respondent did not challenge those                 
               5  We decide this case on the basis of the evidence in the             
          record without regard to the burden of proof.  Accordingly, we              
          need not decide whether the general rule of sec. 7491(a)(1) is              
          applicable.  See Higbee v. Commissioner, 116 T.C. 438 (2001).               

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