Abbott v. Commissioner
This text of 13 T.C.M. 113 (Abbott v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
*306 Petitioners, husband and wife, who filed joint returns, furnished more than one-half the support of the wife's father and stepmother during the year 1949, and are therefore entitled to the exemptions provided by
Memorandum Findings of Fact and Opinion
BRUCE, Judge: The respondent determined deficiencies in the income taxes of the petitioners*307 for the years 1949 and 1950 in the amounts of $200 and $209 respectively. The only issue presented is whether petitioners furnished more than one-half of the support of the claimed dependents during the taxable years.
Findings of Fact
Petitioners are husband and wife residing in Indianapolis, Indiana. They filed joint income tax returns for the calendar years 1949 and 1950 with the collector of internal revenue at Indianapolis, Indiana, wherein they claimed dependency credits for Mr. and Mrs. Randall Travis, the father and stepmother of the petitioner, Mildred L. Abbott. Neither Mr. nor Mrs. Travis were regularly employed or employable during the period involved because of their tubercular condition. Because of this condition each of the Travises was required to have X-ray and medical examinations periodically to determine whether there had been any recurrence or reactivation of the tuberculosis. The X-rays and medical examinations were furnished free by the publice health authorities of the state. There were four X-rays, valued at $10 each, and a total of nine office calls valued at approximately $5 each, on account of the tubercular condition, during each of the taxable years. *308 During the year 1950 Mr. Travis had to have additional medical attention on account of rheumatism and ulcers. These consisted of two additional X-rays valued at $10 each and twelve office calls of an estimated value of $8 each, furnished him free of charge by the Indianapolis General Hospital. During each of the taxable years the Travises were furnished by the Township Trustees weekly allotments for food and milk in the amounts of $7.50 and $1.40 respectively. They also furnished coal amounting to $50 and paid the utility bills of the Travises for one month, amounting to $4.90 for each of the taxable years.
During each of the taxable years Mr. Travis earned approximately $40 repairing radios for neighbors. During 1950 he also raised a garden. A relative furnished the cost of plowing and seed, amounting to $12. Produce received therefrom amounted to approximately $45 in 1950.
The total support received by Mr. and Mrs. Travis, other than from the petitioners, during the taxable years, was as follows:
| 1949 | 1950 | |
| Food | $390.00 | $390.00 |
| Milk | 72.80 | 72.80 |
| Coal | 50.00 | 50.00 |
| Medical: X-rays | 40.00 | 60.00 |
| Office calls (9 at $5) | 45.00 (9 at $5; | 141.00 |
| 12 at $8) | ||
| Utilities | 4.90 | 4.90 |
| Garden | 57.00 | |
| Radio repairing | 40.00 | 40.00 |
| Total | $642.70 | $815.70 |
*309 During the taxable years Mr. and Mrs. Travis lived in a two-room, frame house which had been purchased and was owned by the petitioner, Mildred L. Abbott. They paid no rent therefor. The prevailing rental for comparable accommodations, to wit: "2 rooms and bath (no tub installed), fully furnished, including mechanical refrigerator, cooking stove and washing machines, cooking fuel, cold water, electricity for lights and refrigeration provided," was $11 per week. Petitioners paid the utility bills - gas, water and electricity, amounting to $52.80 during each of the taxable years, and paid the taxes on the property amounting to $15 per year. Petitioners also furnished certain materials and labor on repairs to the house and installation of a stove during the taxable years. In addition, petitioners paid the telephone bills of the Travises amounting to $56.76 for each of the taxable years, and furnished them additional assistance for food and clothing amounting to approximately $100 in 1949 and $125 in 1950. They also supplied them with 3 tons of coal valued at $31.50 in 1949 and 4 tons valued at $42.00 in 1950.
The total support furnished Mr. and Mrs. Travis by petitioners during the*310 taxable years was: