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deduction, that he is entitled to an earned income credit, and
that he is entitled to a child tax credit for the year at issue.
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).
A. Dependency Exemption
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent of the taxpayer. Section
152(a) defines the term “dependent”, in pertinent part, to
include “A son or daughter of a brother or sister of the
taxpayer”. Sec. 152(a)(6).
To prevail on this issue, petitioner must show by competent
evidence that: (1) the individual claimed satisfies the
definitional requirements provided in section 152(a) (the
relationship requirement); (2) the amount of total support
provided for the individual claimed; and (3) he provided more
than half of such support (taken together, the support
requirement). See secs. 151(c)(1)(A), 152(a).
In this instance, the claimed individual, BMB, satisfies the
definitional requirement of “dependent” within the meaning of
section 152(a)(6). Specifically, BMB is the daughter of
petitioner’s sister. Accordingly, the remaining issue is whether
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