- 17 - The payments were for repairs, maintenance, and capital improvements for jointly owned property paid entirely by one of the owners. In contrast to this case, the Commissioner conceded in Conte that the taxpayer could deduct real estate taxes and mortgage interest to the extent he paid them because he was jointly and severally liable for those obligations. Conte v. Commissioner, supra. Unlike this case, in none of those cases did the court find that reimbursement would be highly unlikely. In Estate of Boyd and Conte we did not consider the probability that the taxpayers would be reimbursed. In Levy, the court found that the taxpayers did not show that they could not have enforced their right to be reimbursed. Levy v. Commissioner, supra at 554. Petitioner and his former spouse are jointly and severally liable for the mortgage interest and property taxes at issue. Petitioner could lose the properties if the mortgage interest and property taxes were not paid. Taxpayers may deduct the payment of expenses for which they are not liable if necessary to protect their property interests. Dunn & McCarthy, Inc. v. Commissioner, 139 F.2d 242, 244 (2d Cir. 1943); Waring Prods. Corp. v. Commissioner, 27 T.C. 921, 929-930 (1957); Catholic News Publishing Co. v. Commissioner, 10 T.C. 73, 77 (1948). We conclude that petitioner may deduct the amount he paid for his former spouse’s share of mortgage interest and realPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011