Problem 334 LO 3 4 Determine the number of personal and depe

Problem 3-34 (LO. 3, 4)

Determine the number of personal and dependency exemptions in each of the following independent situations. No tax treaty provisions apply (for example, 1, 2, 3, and so on).

Solution

Solution: Determination of the number of personal and dependency exemptions:

(a) Reginald, a U.S. citizen and resident, contributes 100% of the support of his parents, who are citizens oof Canada and live there: Three. The parents qualify as dependents under the Mexico/Canada exception.

(b) Pablo, a U.S. citizen and resident, contributes 100% of the support of his parents, who are citizens of panama. Pablo\'s father is a resident of Panama, and his mother is a legal resident of the united states: Two. Pablo\'s father does not qualify as he is a citizen and a resident of Panama while his mother qualifies as the resident of the U.S.

(c) Gretchen, a U.S. citizen and resident, Contributes 100% of the support of her parents who are U.S. cicitizens but are residents of Germany: Three. The parents do qualify since they are U.S. citizens.