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contended that the amount of qualifying indebtedness cannot be
ascertained. Petitioners did not respond to respondent's
contention. We conclude that petitioners may not deduct any
amount as qualifying residence interest because facts needed to
calculate the deduction are not in the record.9
G. Conclusion
Petitioners may deduct interest for each year in issue under
the phase-in rules of section 163(d)(6) for investment interest
or section 163(h)(5) for personal interest, whichever is greater.
To reflect concessions and the foregoing,
Decision will be
entered under Rule 155.
9In light of our conclusion, we need not decide respondent's
contention that petitioners have not shown that they meet the
limitations that apply to home equity indebtedness. We also need
not decide petitioners' contention that mortgage interest on
their residence is qualified residence interest under section
163(h)(3) because the residence secured the letters of credit
that in turn secured their note to Voier.
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