OPINION.
These consolidated proceedings involve deficiencies in petitioner’s income tax for the calendar years 1936 and 1937 in the *847respective amounts of $550.66 and $2,604. The contested issue for each year is the same. All of the facts have been stipulated and as so stipulated are hereby found.
The question is whether petitioner is entitled to credits for dependents on account of his four children, each of whom is under 18 years of age and throughout the taxable years resided with petitioner and was supported solely by him. The single ground on which respondent contests the claim is that in May 1936 a trust originally created by the children’s great-grandfather fell in, and the children as remaindermen received the right to the principal of the trust fund and with it to income which in both taxable years amounted to a sizeable sum.
The parties agree that there is no authority directly in point. But this is less startling than might at first appear. For petitioner’s situation falls squarely within the language not only of the statute1 but also of respondent’s regulations.2 It is petitioner’s position, which we accept because respondent in no wise questions it, that under Michigan law petitioner was responsible for the support of his minor children as far as his resources were sufficient, in spite of their possession of independent means. See Chubb v. Bradley, 58 Mich. 268; 25 N. W. 186; Mich. Comp. Laws, 1929, sec. 15771. That being the case there was legal dependency. But there was more than “mere legal dependency” because the facts show that the children were actually supported entirely by petitioner’s funds, so that during the relevant period there was also “actual financial dependency.” And these children did not “receive half or more of their support from a trust fund or other separate source” under the stipulated facts. We see no basis upon which respondent’s position can be maintained. The credits should be allowed.
Other issues having been disposed of by the stipulation,
Decision will be entered wider Bule 50.