- 13 -
1991 income any portion of the Arizona rental income awarded to
Ms. Petrie for the period April through December 1991.
Petitioner testified that pursuant to the Temporary Orders,
he paid the mortgage interest and real estate taxes on the
Arizona rental property. The record supports petitioner's
testimony, and we find petitioner to have been a credible
witness.
The mortgage interest and real estate taxes are contained in
the mortgage payments. Therefore we are convinced from the
record that petitioner made the mortgage interest and real estate
taxes payments. Cohan v. Commissioner, supra. Petitioner is
therefore entitled to a deduction for mortgage interest in the
amount of $1,530 and real estate taxes of $790, totaling $2,320.
Blackburn v. Commissioner, supra.
With respect to the Arizona rental property expenses, other
than the mortgage interest and real estate taxes, petitioner is
entitled to a deduction for one-half of those amounts totaling
$1,145.14. Estate of Boyd v. Commissioner, 28 T.C. 564 (1957).
Next, we must consider whether petitioner may reduce his
income by one-half of his retirement income. On his 1990 and
1991 returns, petitioner reported $20,408.25 and $22,198.40 of
14 Auto and travel $150
Cleaning and maintenance 100
Insurance 163
Repairs 125
Depreciation 607
Total 1,145
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