§21 — Expenses for household and dependent care services necessary for gainful employment

Non-issues The surgical procedures involved in this case are startling, and to avoid distraction from the actual issues, it is expedient to affirm what is not at issue here : Neither the tax collector nor the Tax Court sits as aboard of medical review, as if it were reconsidering, validating, or overruling the medical profession's judgments about what medical care is appropriate or effective for what medical conditions .

We disagree with petitioners’ claim that Congress “tweaked” the section 162 profit motive standard for purposes of section 183.

In the notices ofdeficiency respondent disallowed the dependent care credit claimed by petitioners each year because they allegedly failed to establish that their children were qualifying individuals pursuant to section 21.

dges that upbn execution and recording ofthis l$reservation Easement, * * * [LPCI] shall be immediately vested wïth a real property interest in the Premises and that such iñterest of * * * [LPCI] shall have a stipùlated fair market value, for purposes of allocating net proceeds in an extinguishment pursuant to Section 21, equal to the ratio between the fair market value ofthe Preservation Easement and the fair market value ofthe Premises prior to considering the impact ofthe Preservation Easemen

Petitioner claimed the expenses were paid to the service provider “Prestigious” and attached the required Form 2441, Child and Dependent Care Expenses, providing identifying information with respect to it on his 2000 tax return pursuant to section 21(e)(9).

Child Care Credit Section 21 provides for a credit for a percentage of the expenses for the care of a child under age 13 paid by an individual to enable the individual to be gainfully employed.

Petitioner claimed the expenses paid to Kuddle Korner and provided identifying information with respect to that service provider on her 1995 return pursuant to section 21(e)(9).

Section 21 provides, in part, that an individual who maintains a household which includes as a member a qualifying individual - 6 - shall be allowed a credit based on the expenses for household services and dependent care services incurred to enable the taxpayer to be gainfully employed.

Section 21 provides, in part, that an individual who maintains a household which includes as a member one or more qualifying individuals shall be allowed a credit based on the expenses for household services and dependent care services incurred to enable the taxpayer to be gainfully employed.

rned income of $400 per month for two or more qualifying persons.” This special rule, however, serves to ameliorate the earned income limitation on the amount of a taxpayer’s “employment-related expenses” for purposes of the child care credit under section 21; this special rule does not apply in determining the amount of a taxpayer’s earned income for purposes of the earned income credit under section 32.

und that E.P. was petitioner's qualifying child. At trial petitioner credibly testified that E.P. had a mental disability and that he lived with her for more than halfof2008. Therefore, E.P. was a qualifying individual for petitioner for purposes ofsection 21. Although petitioner credibly testified that she paid E.P.'s tuition, she does not remember how much she paid. She also did not introduce any records that established the amount she paid in 2008. Since petitioner did not substantiate her cl

Dependent Care Credit Section 21 allows a credit to taxpayers with respect to whom there are one or more "qualifying individuals" equal to a percentage ofthe "employment-related expenses" paid by the taxpayerduring the taxable year.

al’s spouse is not a member of such household, [then] such individual is not considered as married. 4 Sec. 32(d) expressly makes sec. 7703 applicable in determining whether an individual is married. Sec. 21(e) effectively incorporates sec. 7703 into sec. 21. See sec. 21(e)(1), (3), and (4). 5 Petitioner does not cite sec. 7703(b). Rather, she relies on IRS Pub. 596, Earned Income Credit, and the portion thereof dealing with married persons who live apart. We note that such portion of the publica

. Cotton and Mr. Cotton),¹ the issues for ¹ Mr. Cotton concedes that he is not entitled to the following: (1) Head-of-household filing status under sec. 2(b) for 1994 and 1996; (2) single filing status for 1995; (3) dependent care credit pursuant to sec. 21 in the amount of $911 for 1994 (respondent erróneously categorized the credit as the child care credit under sec. 24, which did not go into effect until 1998); (4) Schedule C, Profit or Loss From Business, loss in the amount of $10,150 for 19

Child Care Expenses Pursuant to section 21, petitioner reported child and dependent care expenses of $4,800 for two children, and claimed a credit of $1,056.

. Cotton and Mr. Cotton),¹ the issues for ¹ Mr. Cotton concedes that he is not entitled to the following: (1) Head-of-household filing status under sec. 2(b) for 1994 and 1996; (2) single filing status for 1995; (3) dependent care credit pursuant to sec. 21 in the amount of $911 for 1994 (respondent erroneously categorized the credit as the child care credit under sec. 24, which did not go into effect until 1998); (4) Schedule C, Profit or Loss From Business, loss in the amount of $10,150 for 19

oner's proper filing status for the years in issue is single. Respondent is sustained on this issue. 3. Dependent Care Credits The third issue for decision is whether petitioner is entitled to the claimed child and dependent care credits pursuant to section 21. Petitioner reported child and dependent care expenses of $4,800 in both years in issue and claimed credits in the amount of $1,008 and $960 for 1995 and 1996, respectively. Respondent disallowed the credits due to (1) petitioner's lack of

On petitioner's 1992 Federal return, he claimed a credit under section 21 for child and dependent care expenses in the amount of $560.

4.Child Care Credits Section 21 (a) allows a credit for a "percentage of the employment-related expenses * * * paid by * * * [an] individual during the taxable year" if the individual maintains a household that includes "one or more qualifying individuals".

§ 21.3(d) (definition of “cabin site” for cabins located on federal conservation/recreation land); 43 C.F.R. § 8360.0-5(c) (defining “developed recreation sites and areas”); 43 C.F.R. §§ 8365 et seq. (rules of conduct for patrons of public recreation land). 51 [*51] wildlife, or plant community, or similar ecosystem normally lives will meet the co

Section 21 of each of the GMAC deeds of trust provides: Should the property or any part thereof be taken or damaged by reason of any public improvement or condemnation proceeding, or damaged by fire, or earthquake, or in any other manner, the Beneficiary shall be entitled to all compensation, awards, and other payment or relief therefor * * *. All

Section 21 ofthe Act defines "financial provision" as a "provision available * * * under section 23 below for the purpose ofadjusting the financial position ofthe parties to a marriage * * * in connection with proceedings for divorce, nullity of marriage orjudicial separation". Matrimonial Causes Act 1973, c. 18, sec. 21(1) (Eng.). Section 23(1) of

21-323 (LexisNexis 2008). Nevertheless, a corporation subject to such automatic dissolution "continues its corporate existence" as necessary to wind up and liquidate its business and affairs. Il - 20 - failed to carry their burden ofshowing that Little Salt's existence discontinued or its obligation to make a Federal income tax return ended b

Bond & Indem. Co. v. Pappas, 741 N.E.2d 248 (Ill. 2000). During these auctions to sell thejudgment liens the participants will bid "penalty percentage" rates, rånging 4In 2007 Boo Noz Corp. was owned by the followingpersons or qntities with the following percentages ofownership: John Bridges (40%), Barrett Rochman (32%), Charles D

21-323 (LexisNexis 2008). Nevertheless, a corporation subject to such automatic dissolution "continues its corporate existence" as necessary to wind up and liquidate its business and affairs. Il - 20 - failed to carry their burden ofshowing that Little Salt's existence discontinued or its obligation to make a Federal income tax return ended b

Bond & Indem. Co. v. Pappas, 741 N.E.2d 248 (Ill. 2000). During these auctions to sell thejudgment liens the participants will bid "penalty percentage" rates, rånging 4In 2007 Boo Noz Corp. was owned by the followingpersons or qntities with the following percentages ofownership: John Bridges (40%), Barrett Rochman (32%), Charles D

21-323 (LexisNexis 2008). Nevertheless, a corporation subject to such automatic dissolution "continues its corporate existence" as necessary to wind up and liquidate its business and affairs. Il - 20 - failed to carry their burden ofshowing that Little Salt's existence discontinued or its obligation to make a Federal income tax return ended b

Bond & Indem. Co. v. Pappas, 741 N.E.2d 248 (Ill. 2000). During these auctions to sell thejudgment liens the participants will bid "penalty percentage" rates, rånging 4In 2007 Boo Noz Corp. was owned by the followingpersons or qntities with the following percentages ofownership: John Bridges (40%), Barrett Rochman (32%), Charles D

21-323 (LexisNexis 2008). Nevertheless, a corporation subject to such automatic dissolution "continues its corporate existence" as necessary to wind up and liquidate its business and affairs. Il - 20 - failed to carry their burden ofshowing that Little Salt's existence discontinued or its obligation to make a Federal income tax return ended b

21-20,157(4) (LexisNexis 2008 & Supp. 2014). 3. Trust Fund Doctrine Under the common law trust fund doctrine, “property of the corporation constitutes a trust fund in the hands of its officers and directors, and a transaction between them whereby the corporation’s property is diverted from the corporation to their own use and benefit will not

letter; and (4) drafting the board ofdirectors resolutions that would ratify the 19In a PwC memo regrading the "Singapore tax consequences ofthe * * * [reinvestment plan]", there is a briefdiscussion on Singapore corporate law. The memo states that sec. 21 ofthe Singapore Companies Act does not allow a subsidiary to hold shares ofits Singapore parent. 20The first draft ofthe representation letter was prepared by PwC and subsequently provided to Barnes for review. Barnes' CFO and other officers

ction 38(a) (general business credit applied as a "credit against the tax imposed"). And we have imposed penalties on disallowed credits against the tax under many provisions.1° In doing so, we necessarily reduced the amount shown as tax by the 9See sec. 21 (expenses for household and dependent care services necessary for gainful employment); sec. 22 (credit for the elderly and the permanently and totally disabled); sec. 23 (adoption expenses); sec. 24 (child tax credit); sec. 25 (interest on ce

21 (expenses for household and dependent care services necessary for gainful employment); sec. 22 (credit for the elderly and the permanently and totally disabled); sec. 23 (adoption expenses); sec. 24 (child tax credit); sec. 25 (interest on certain home mortgages); sec. 25A (hope and lifetime learning credits); sec. 25B (elective deferrals a

On September 21, 1995, Mr. Wall issued to PBR five supplemental type certificates that approved a number ofthe modifications that he helped to develop for Project 288. The approved modifications to the Twin Comanche design included the conversion ofits 14-volt electrical system to a 28-volt electrical system with dual alternators, as w

Child Care Credit, Child Tax Credit, and Additional Child Tax Credit In order for a taxpayerto claim a section 21 credit for expenses for household and dependent care services necessary for gainful employment (child care credit), a taxpayermust incur employment-related expenses on behalfof, as pertinent to this case, a dependent ofthe taxpayer as defined in section 152(a)(1)?

On September 21, 1995, Mr. Wall issued to PBR five supplemental type certificates that approved a number ofthe modifications that he helped to develop for Project 288. The approved modifications to the Twin Comanche design included the conversion ofits 14-volt electrical system to a 28-volt electrical system with dual alternators, as w

Child Care Credit, Child Tax Credit, and Additional Child Tax Credit In order for a taxpayer to claim a section 21 credit for expenses for household and dependent care services necessary for gainful employment (child care credit), a taxpayer must incur employment-related expenses on behalf of, as pertinent to this case, a dependent of the taxpayer as defined in section 152(a)(1).

sThe Kuntzes have not claimed a credit under sec 21; which allows a taxpayer a credit for a percentage of the expenses of caring for a spouse who is 'physically or mentally incapable-of caring for himself or herself and who has the same principal place of abode as the taxpayer" if "such expenses are incurred to enable.the taxpayer to be gainfully employed".

addition, section 274(d) imposes stringent substantiation requirements for claimed deductions relating to the use of "listed property", which is defined under section 21t80F(d) (4) (A) (i) to include passenger automobiles .

21 - 1910 .269 (1997) ; applies to electric power generation, transmission, and distribution; and another, 29 C .F.R . sec . 1910 .302 (1997), applies to electric utilization systems . Again, the dividing line is control . First, the NESC (and not the NEC) controls here because the NESC governs street light assets that PP&L controlled . Under

121-201, "Cert fica e of limited part rship", provides : (a) In order to form a limited pa tner h p the eneral partners shall execute a par ners i agreement , nd a certificate of limited partner hip h 11 be xecuted in accordance with section 21-2 4 of this rticle .

- 7 - relevant here, the statute generally defines a head of household as an unmarried individual who maintains as his or her home a household which constitutes for more than one-half of the taxable year the principal place of abode of either a qualifying child (as defined in section 152(c )) or a dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151 .

for herself and the other for her granddaughter, L.H. As noted supra note 2, petitioner claimed the child care credit, the child tax credit, the earned income credit, and head-of-household filing status. 2Petitioner claimed a child care credit under sec. 21 and the child tax credit under sec. 24. Both credits are allowable if the taxpayer is entitled to a dependency exemption deduction for a child. Accordingly, petitioner’s entitlement to these credits depends on the Court’s holding on the depen

n 162, the cost - 23 - of care for their child during working hours. See, e.g., O’Reilly v. Commissioner, T.C. Memo. 1974-261 (and cases cited therein). Congress has enacted a separate credit for child care expenses, which is currently embodied in section 21. Indeed, petitioners took advantage of that provision to claim a $30 credit on their 1999 tax return in addition to their Schedule C deductions. However, the rule set forth in O’Reilly still stands, and petitioners may not deduct the costs o

whether petitioner is entitled to a section 21 child care credit for taxable year 2003 ; 3 .

Petitioner did not establish either that she maintained a household or that she incurred employment-related expenses for the children, and, as the Court holds that she is not entitled to dependency exemption deductions for the three children, it follows that she is not entitled to the section 21 child care credit.

t has accrued since 1977 on their 1971 tax liability. Petitioners failed to pay the taxes reported on their 1971 income tax return, and those taxes were only satisfied when 15(...continued) necessary for the enforcement of the provisions of the Act, § 21a(15). 11 U.S.C. § 11(a)(15). 16Rule 39 provides: Rule 39. Pleading Special Matters A party shall set forth in the party’s pleading any matter constituting an avoidance or affirmative defense, including res judicata, collateral estoppel, estoppel

151; (2) whether petitioner is entitled to head-of-household filing status under section 2(b); (3) whether petitioner is entitled to the earned income credit under section 32(a); and (4) whether petitioner is entitled to the child care credit under section 21. An additional adjustment, reducing the rate reduction credit claimed by petitioner under section 6428, is a computational adjustment that is resolved by the Court's holding on the contested issues. Some of the facts were stipulated. Those

on Schedule A, Itemized Deductions, in addition to those allowed by respondent for all years at issue; (2) is not entitled to head-of-household filing status under sec. 2(b) for all years at issue; (3) is not entitled to the child care credit under sec. 21 for all years at (continued...) - 3 - (1) Whether petitioner received unreported income from the sale of tax shelters and insurance during 1982, 1983, 1984, 1985, 1986, and 1987 of $56,701, $46,744, $16,939, $27,783, $49,346, and $23,406, res

151; (2) whether petitioner is entitled to head-of- household filing status under section 2(b); (3) whether petitioner is entitled to the earned income credit under section 32(a); and (4) whether petitioner is entitled to the child care credit under section 21. Some of the facts were stipulated. Those facts, with the exhibits annexed thereto, are so found and are made part hereof. Petitioner's legal residence at the time the petition was filed was Dallas, Texas. On his Federal income tax return

At trial, respondent conceded petitioner's entitlement to a child care credit under section 21 for both years.

21- 2203 (1997); United States Natl. Bank v. Rupe, 296 N.W.2d 474 (Neb. 1980). A change in a professional corporation’s name does not change the underlying entity. See Neb. Rev. Stat. secs. 21- 2204, 21-20,116, 21-20,124 (1997). Likewise, changes in the ownership of the 1203 Partnership do not amount to a change in a party to the lease. See Ne

ses include child care services, such as nursery school. Sec. 1.44A-1(c)(3)(i), Income Tax Regs.2 As previously indicated, petitioner provided more than one- half of the cost of maintaining the household. Petitioner’s 2 Sec. 44A was redesignated as sec. 21 for tax years beginning after Dec. 31, 1983, pursuant to sec. 471(c)(1) of the Deficit Reduction Act of 1984, Pub. L. 98-369, 98 Stat. 826. - 9 - child care costs were incurred to care for Ayla, her qualifying child, while petitioner worked. A

The issues for decision are: (1) Whether petitioners are entitled to a section 21 child care credit in each of the years 1996 and 1997; and (2) whether petitioners are entitled to a dependency exemption deduction for Heche Singh in 1997.

Section 262 provides that no deduction is allowed for personal, living, or family expenses.

We conclude that, except for the fraud penalty under section 21Where a reply is not filed, the affirmative allegations in the answer are deemed to be denied unless the Commissioner, within 45 days after the expiration of the time for filing the reply, files a motion that specified allegations in the answer be deemed admitted.

92 (S.D. 1980), the South Dakota Supreme Court stated that, while the "sole object of compensatory damages is to make the injured party whole", the "purpose of awarding punitive damages is to punish - 5 - the wrongdoer." See also S.D. Codified Laws sec. 21-3-2 (Michie Supp. 2000) (the jury, in addition to the actual damage, may give punitive damages for the sake of example, and by way of punishing the defendant); Veeder v. Kennedy, 589 N.W.2d 610, 622 (S.D. 1999) (punitive damages may properly b

ing under the laws of the United Kingdom. During 1992, a corporation that resided in the United Kingdom was required to pay tax to the United Kingdom at the rate of 33 percent on its corporate income (mainstream tax). See Finance (No. 2) Act, 1992, sec. 21. Additionally, a corporation that paid a dividend to its shareholders was obligated to pay to the United Kingdom ACT. See Income and Corporation Taxes Act, 1988, sec. 14(1) (Eng.) Generally, upon payment of the ACT, a U.K. corporation becomes

A “document” for this - 7 - purpose includes a regulation. 1 C.F.R. sec. 1.1 (1999). Petitioner points out that the regulations under title 27 of the Code of Federal Regulations, containing regulations pertaining to the Bureau of Alcohol, Tobacco, and Firearms, comply with this provision, but the regulations under title 26 of th

ting under the laws of the United Kingdom. During 1992, a corporation that resided in the United Kingdom was required to pay tax to the United Kingdom at the rate of 33 percent on its corporate income (mainstream tax). See Finance (No. 2) Act, 1992, sec. 21. Additionally, a corporation that paid a dividend to its shareholders was obligated to pay to the United Kingdom ACT. See Income and Corporation Taxes Act, 1988, sec. 14(1) (Eng.). Generally, upon payment of the ACT, a U.K. corporation become

Specifically, Section 16 lost $2,600; Section 18 lost $3,500; Section 20 lost $65,973.87; Section 21 lost $22,000 and Section 23 lost $37,816.60.

85 1990 12,800 2,383.00 1991 6,984 981.00 1992 6,881 1,984.00 After concessions by the parties, the issues remaining for decision are: (1) Whether Mary Ann Collins (petitioner) overstated gross receipts or sales income from her trade or business activity for the years 1989 and 1990; (2) whether petitioners are entitled to a child care credit under section 21 1 Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the years at issue.

Izen dated December 17, 1984, declaring petitioner's involuntary dissolution due to its failure to file an annual statement for the year 1984 as required by section 21 of the Texas Professional Association Act, Tex.

The warranty deed 9 to the property that was recorded describes the property in question as-- That portion of the West Half of the Southwest Quarter of Section 21, Township 11 North, Range 1 East of the Fourth Principal Meridian, Knox County, Illinois, which is Lot 1 of the Hillyers Excavating Subdivision, as per plat dated December 20, 1991, by Paul M.

The warranty deed 9 to the property that was recorded describes the property in question as-- That portion of the West Half of the Southwest Quarter of Section 21, Township 11 North, Range 1 East of the Fourth Principal Meridian, Knox County, Illinois, which is Lot 1 of the Hillyers Excavating Subdivision, as per plat dated December 20, 1991, by Paul M.