10 on the language of section 162(a)(3), which prevents taxpayers from deducting expenses for rental payments for property to which the taxpayer has taken title or in which the taxpayer has equity, and Missouri property law which provides that petitioners, as tenants by the entireties, are each "'the owner of the entire estate; neither of whom have any separate or joint interest'". Morgan v. Finnegan, 87 F. Supp. 274, 276 (E.D. Mo. 1949), affd. 182 F.2d 649 (8th Cir. 1950) (quoting Murawski v. Murawski, 209 S.W.2d 262 (Mo. Ct. App. 1948)). Respondent concluded that because Mr. Cox owned an interest in the property rented, he was not entitled to claim a deduction for payments attributable thereto. To prevent an inequitable situation, respondent also deleted from Mrs. Cox's rental income the amount at issue. Petitioner argues that our decision in Cox v. Commissioner, supra, established that respondent intentionally disregarded the rights of married women in general, and Mrs. Cox, in particular, by refusing to recognize that the marital community is a distinct entity with which Mr. Cox and his law practice may contract. This statement is incorrect. In fact, we clearly stated that "Petitioners, likewise, have failed to convince us that the marital community is an entity separate and apart from petitioner wife and petitioner husband." Id.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011