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For 1987, section 16336 allowed a deduction, subject to the
36 Sec. 163 provides, in pertinent part, as follows:
SEC. 163. INTEREST.
(a) General Rule.--There shall be allowed as a
deduction all interest paid or accrued within the taxable
year on indebtedness.
* * * * * * *
(d) Limitation on Investment Interest.--
* * * * * * *
(6) Phase-in of disallowance.--In the case of any
taxable year beginning in calendar years 1987 through
1990--
* * * * * * *
(B) Applicable percentage.--for purposes of
this paragraph, the applicable percentage shall be
determined in accordance with the following table:
In the case of taxable The applicable
years beginning in: percentage is:
1987 . . . . . . . . . . . . . . . . . . 35
1988 . . . . . . . . . . . . . . . . . . 60
1989 . . . . . . . . . . . . . . . . . . 80
1990 . . . . . . . . . . . . . . . . . . 90
* * * * * * *
(h) Disallowance of Deduction for Personal Interest.--
* * * * * * *
(2) Personal interest.--For purposes of this
subsection, the term “personal interest” means any
interest allowable as a deduction under this chapter
* * *
* * * * * * *
(continued...)
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