Asked by Rukhna Chaudhry on May 12, 2024
Verified
Robert,Fred and Lucas are supporting their mother who lives in a separate apartment.Their contributions towards her support are 10%,40% and 50%,respectively.In a multiple support agreement,who would be entitled to claim the mother as a dependent?
A) Robert.
B) Fred or Lucas.
C) Robert,Fred or Lucas.
D) None of these.
Multiple Support Agreement
An agreement where multiple parties contribute to the support of an individual, allowing one to claim a tax exemption under certain conditions.
Claim the Mother
The act of declaring a mother as a dependent or beneficiary for tax or legal purposes, subject to specific criteria.
- Ascertain the conditions for eligibility for dependency exemptions in terms of support and income thresholds.
Verified Answer
MD
mouctar diakiteMay 15, 2024
Final Answer :
B
Explanation :
In a multiple support agreement, multiple people contribute towards the support of an individual but no one person provides more than 50% of the support. In this scenario, Fred and Lucas together contribute 90% of the support, which is more than 50%, making either of them eligible to claim their mother as a dependent. Robert's contribution of 10% is less than 50% and therefore he cannot claim his mother as a dependent.
Learning Objectives
- Ascertain the conditions for eligibility for dependency exemptions in terms of support and income thresholds.