Julie loaned her friend Nathan $ 2,500. Yes, although Susan is not a qualified child for dependency purposes — did repay the debt and skipped town Can claim any deduction this

SOLUTION

Yes, although Susan is not a qualified child for dependency purposes under §152(c), Susan would be a “qualifying relative” under §152(d)(2)(H). Susan would qualify as a “member of the taxpayer’s household,” and therefore would be a qualified relative. Ann can claim the exemption (assuming the other dependency tests are met).