2007 dependency test

[AZ-Tax]

The children qualify as dependents with age and by relation to the taxpayer. TP (MFJ) had children living with him thru 6/30/07. Then Children are adopted and placed into a home unrelated to children or TP. The newly adopted parents claimed the children as dependents and TP also claimed same children as dependents in 2007. TP receives letter from IRS disallowing the children as a deduction.

Any way the TP can reverse this IRS letter?

[solomon]

I don't see how.

[Jesse]

Agree with Solomon.

Not a qualifying child because they would not meet the Member of the household test 1/1/07 to 06/30/07 does not equal more than half the year.

Not a qualifying relative because (and I'm assuming this) the children are qualifying children of the adoptive parents.

[AZ-Tax]

Does Foster Parents change things?

What if the TP was providing Foster care thru 6/30/07?

Page 3-18 of 07 TTB mentions Foster child just as a definition.

If not, how does the adoptive parents get the dependents when they had the children 6 months? Is it first file first served by IRS?

[Beth]

2007 dependency test

Count the days - I think parents had 181.

that leaves the adoptive with over half of the days in the year.... where presumable the adoptive parents were now paying all the expenses and providing the home...

[Jesse]

Not a qualifying child because they would not meet the Member of the household test 1/1/07 to 06/30/07 does not equal more than half the year.

I came to this conclusion because from 1/1/07 to 06/30/07 is only 181 days, so although 6months, still less than half the year.

[erchess]

My Calculation

By my calculation, in a non leap year there are 181 days to 30 June and 184 days in the rest of the year. I do believe that this question came down to counting the days.

[AZ-Tax]

New twist to problem

As mentioned in my first post, the TP had the 3 qualifying (by blood relation and age) dependents through July 1, 2007 (not 6/30/07 which is still 182 days) then the 3 children were physically removed and placed with a couple for adoption but the adoption did not finalize till 4th quarter of 2007 if at all in 2007 (TP believe its one of the 2). The children and adoptive parents to be are not blood related.

Would this be an exception for the TP to be able to claim the 3 qualifying dependents on his 2007 tax return?

OR is neither the TP or the adoptive parents to be, allowed to file with the 3 children on their 2007 tax return?

[taxea]

That the children were taken away and the adoption was not final until later doesn't matter. The children were not with the taxpayer for more than 1/2 the year. Can't count any of the time after they were taken because they don't qualify as residents of the home due to the reason they were away.

If the adoption was completed within the year then the adopted parents can take the child for the entire year.
taxea