Clark v. Commissioner
This text of 1968 T.C. Memo. 83 (Clark 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
*215 Held: The petitioner has shown that she provided more than half the support for each of her three grandchildren in 1962 and 1963.
Memorandum Findings of Fact and Opinion
SIMPSON, Judge: The respondent determined deficiencies in the petitioner's income tax of $439.54 for the taxable year 1962 and*216 $376.10 for the taxable year 1963. The sole issue for decision is whether the petitioner provided more than one-half of the total support of each of her three grandchildren in the years 1962 and 1963 within the meaning of
Findings of Fact
Some of the facts have been stipulated, and those facts are so found.
The petitioner is an individual who resided at Naperville, Illinois, at the time the 400 petition was filed in this case. She filed her Federal income tax returns for the taxable years 1962 and 1963 with the district director of internal revenue, Chicago, Illinois.
Colleen Baranowski, the petitioner's daughter, was married to Clement J. Baranowski on December 27, 1952. Three children, Clinton, Cathleen, and Caroll, were born of this marriage. On November 14, 1961, Colleen Baranowski obtained a decree of divorce from Clement J. Baranowski. At the time of the divorce, Clinton was 7 years old, Cathleen was 5, and Caroll was 1 1/2. Under*217 the terms of the divorce, Mrs. Baranowski was awarded the care, custody, education, and control of the three children, and Mr. Baranowski was given the right to visit the children weekly and remove them from her custody for 1 day each week.
During the years 1962 and 1963, the three children resided with their mother at the home of the petitioner. The petitioner provided the children with lodging, food, clothing, toys, recreation, medical care, and transportation. Under the terms of the divorce decree, Mr. Baranowski was required to pay, and did pay during 1962 and 1963, $35 a week for the support of the three children and $5 per week on account of arrearages of temporary child support existing and accrued at the time of the divorce decree. The petitioner provided the balance of the support of the three children for each of such years. During part of such years, Mrs. Baranowski attended North Central College.
The total direct support provided the three children during the years 1962 and 1963 was as follows:
| 1962 | 1963 | |
| Insurance premiums | $ 203.82 | $ 178.20 |
| Medical expenses | 20.00 | |
| Food | 2,004.00 | 2,004.00 |
| Miscellaneous (clothing, gifts, fees, recreational equipment, etc.) | 503.09 | 839.05 |
| $2,730.91 | $3,021.25 |
*218 The petitioner purchased her residence, in which she lived with her daughter and grandchildren during 1962 and 1963, for $24,000 in 1961. Its fair rental value, furnished as it was with $2,000 worth of furnishings during the years 1962 and 1963, was $200 per month, or $2,400 per year. The total household expenditures for the benefit of the household generally, plus the fair rental value of the residence, were as follows in such years:
| 1962 | 1963 | |
| Auto expense plus depre- ciation | $ 834.97 | $ 786.94 |
| House expenses (utilities and miscellaneous) | 878.04 | 784.28 |
| Fair rental value of lodging | 2,400.00 | 2,400.00 |
| $4,113.01 | $3,971.22 |
Three-fifths of these expenses were allocable to the support of the three children; that is, $2,467.81 in 1962 and $2,382.73 in 1963. The total support of the three children was as follows:
| 1962 | 1963 | |
| Direct support | $2,730.91 |