Jayesh B. and Devsmita J. Patel - Page 3

                                        - 2 -                                         
               Respondent determined a deficiency in petitioners’ Federal             
          income tax of $295 for the taxable year 2002.                               
               The issue for decision is whether petitioners’ prepayment of           
          $3,611 of tuition in 2001 entitles them to a Lifetime Learning              
          Credit pursuant to section 25A in tax year 2002.                            
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and the attached exhibits are                      
          incorporated herein by this reference.  Petitioners resided in              
          York, Pennsylvania, on the date the petition was filed in this              
               During taxable year 2002, Ami Patel (Ms. Patel),                       
          petitioners’ niece, lived with petitioners for the entire year.             
          Ms. Patel, whom petitioners claimed as a dependent, was a full-             
          time student at York College in York, Pennsylvania, during                  
          taxable year 2002.  In the year in issue, petitioners paid $3,750           
          in qualified education expenses to York College.  Also, in the              
          taxable year 2001, petitioners paid $3,611 in qualified education           
          expenses to York College.  The payment of $3,611 made on November           
          28, 2001, to York College represented prepaid tuition for the               
          spring semester of 2002.1  Petitioners prepaid the spring                   

          1It is unclear from the record when the 2002 spring semester                
          began at York College.  However, due to the fact that York                  
          College measures the college year in semesters and not trimesters           
          nor quarters, we assume that the spring semester of 2002 began in           

Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011