McLu Buah and Peter Buah - Page 11




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          abode of a child who is the tax dependent of such individual; (3)           
          the individual furnishes over one-half the cost of maintaining              
          such household during the taxable year; and (4) for the last 6              
          months of the taxable year, the individual’s spouse is not a                
          member of such household.                                                   
               Petitioners did not file a joint return for either year and            
          were not legally separated under a decree of divorce or separate            
          maintenance.  Petitioners assert, however, that they were living            
          apart and that the children lived with Mrs. Buah, thereby                   
          satisfying the requirements of section 7703(b).  Respondent                 
          contends that petitioners lived together during the years at                
          issue.  In the alternative, respondent asserts that even if                 
          petitioners lived apart and Mrs. Buah maintained a household that           
          was the children’s principal place of abode, Mrs. Buah did not              
          furnish over one-half of the cost of maintaining the household.             
               Petitioners testified they lived apart in 2002 and 2003 and            
          had separate mailing addresses.  As we indicated at trial,                  
          however, we do not find petitioners’ testimony on this issue to             
          be credible.  Petitioners failed to explain why they would                  
          purchase a home together if they were separated.  The signed loan           
          application, which indicates that petitioners were in fact living           
          together, further undercuts petitioners’ position.  In addition,            
          Mr. Buah conceded that although petitioners had separate mailing            








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