- 12 - Francisco Federal mortgage interest expense for 1989 and 1990. See Ashburn v. United States, 740 F.2d 843, 850 (11th Cir. 1984); Brice v. Commissioner, T.C. Memo. 1990-355, affd. without published opinion 940 F.2d 667 (9th Cir. 1991); R.C. Lindsey Plumbing, Inc. v. Commissioner, T.C. Memo. 1988-73; Rouffy v. Commissioner, T.C. Memo. 1987-5. At trial, respondent continued to dispute whether interest on another obligation secured by the Burke property, namely, the McMahon note, was currently deductible, arguing that the "all events" test had not been satisfied. See United States v. General Dynamics Corp., 481 U.S. 239 (1987); Guardian Inv. Corp. v. Phinney, 253 F.2d 326, 331 (5th Cir. 1958). The McMahon note provided for 7-percent interest compounded annually starting on January 1, 1988, with any unpaid principal and interest due and payable on December 31, 1997. The terms of the McMahon note required no payment until December 31, 1997, the day before the termination of the Burke lease. If the Burke property were sold, however, the note would become immediately due and payable. Respondent argued that the interest expense on the McMahon note was not allowable since the payment of the principal was contingent and dependent on the disposition of the Burke property and the note was subordinated to another obligation. Id. at 331. Although we found respondent's logic on this issue "less than compelling" at trial, that does not mean that her positionPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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