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dependent as defined in section 152. Sec. 151(c). A dependent
generally includes a son or daughter of the taxpayer if: The
taxpayer provided over half of the child’s support during the
calendar year, and the child is under the age of 19 or is a full
time student and under the age of 24. Secs. 151(a), (c), 152(a).
In the instant case, petitioner’s son was 12 years old
during taxable year 2000 and lived with petitioner and his spouse
for the entire year. At trial, petitioner testified that his
spouse was not employed during taxable year 2000 and further
testified that his dependent son has always lived with petitioner
and his spouse. We believe petitioner’s testimony that his
spouse did not have any income during taxable year 20004 and that
his minor son was a dependent. Accordingly, petitioner is
entitled to two additional exemptions for his spouse and minor
son.
Regarding petitioner’s claimed Schedule C business expenses,
deductions are a matter of legislative grace, and the taxpayer
bears the burden of proving that he is entitled to the claimed
deductions. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S.
79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435
(1934). The taxpayer must maintain records sufficient to enable
the Commissioner to determine the correct tax liability. Sec.
4We infer from petitioner’s testimony that his spouse is not
the dependent of another taxpayer.
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Last modified: May 25, 2011