- 11 -
interest deduction for 1990 on Schedule E for the mortgage
interest paid by him in the amount of $1,575. Cohan v.
Commissioner, supra. (See discussion of mortgage interest
deductions by co-owners of real property infra pp. 11-12.)
The third issue for decision is whether petitioner had
additional rental income and is entitled to claim additional
rental expenses for 1991. Petitioner contends he should be
permitted to exclude the rental income on his 1991 return and is
entitled to claim the rental expenses because the Temporary
Orders mandated such treatment. Respondent contends that
petitioner must report his share of the income and expenses.13
Income with respect to joint tenancy property is allocated
and taxed in proportion to that which each co-owner is entitled
to receive under local law. Parsons v. Commissioner, 43 T.C. 378
(1964). A co-tenancy under Colorado law provides that each of
two joint tenants owns an undivided one-half interest in the
property as a whole. Commercial Factors v. Clarke & Waggener,
684 P.2d 261 (Colo. Ct. App. 1984).
However, co-owners are entitled to a deduction for mortgage
interest and real estate taxes paid on jointly-owned property to
the extent that they have actually paid these amounts and
provided that no other tenant has previously claimed a deduction
13 Prior to trial, respondent conceded that petitioner should report
rental income of $750 and be allowed rental expenses of $4,032. At trial,
respondent withdrew this concession.
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