Frank Scarangella v. Commissioner of Internal Revenue

OPINION OF THE COURT

Appellant-taxpayer claims a dependency exemption for his aged mother for the year 1965, even though she had gross income during that year in excess of $600. Appellant's mother owned the home in which she and her son lived, and she leased a portion of the house in that year for rental payments totaling $860. The Internal Revenue Service and the Tax Court denied the taxpayer’s claim for a dependency exemption. 1 In the Tax court opinion, Judge Dawson said:

“Exemptions for dependents are matters of legislative grace, and are allowable as deductions in computing taxable income…