Even if you have signed as an owner-builder on the building permit: 1  you and a builder, contractor or tradesperson must enter into a written contract for domestic building work costing more than $5,000.
1 The parent who the child spends the most time with may claim the dependent. 2  If the child spends equal time between both parents, then the parent with the highest adjusted gross income may claim the dependent. 3  If only one of the taxpayers is the childâs parent, that parent may claim the dependent.
Typically, the parents negotiate as to which one will have the right to claim a child as a dependent for tax purposes. If the court is making the order, the court must consider the net tax effects of this order for each household and which outcome would be in the childâs best interests. The non-residential parent must have a signed IRS Form (presently, Form 8332) in order to declare the child as a dependent for tax purposes.