Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 9

Shelly is a U.S. citizen and is the 67-year-old widowed mother of Janet. After retirement, Shelly decided to fulfill a lifelong dream and move to Paris. Shelly receives $1,000 of interest income, but all of her other living expenses (including rent on her Paris apartment with spectacular views of the Eiffel Tower) are paid by Janet. Janet resides in Chicago. Is Janet entitled to a dependency exemption for Shelly? Explain your answer.