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trade or business, see Treas. Reg. sec. 1.62-1(d),
relating to nondeductibility of State income taxes in
computing adjusted gross income.) * * * [Staff of
Joint Comm. on Taxation, General Explanation of the Tax
Reform Act of 1986, at 266 (J. Comm. Print 1987).]
Were it not for the foregoing, we would have been inclined
to conclude that the provisions of section 163(h)(2)(A) standing
alone would not have provided a sufficient basis for upholding
the regulation. We so state because we have consistently been
reluctant to conclude that Congress overruled existing case law
when the statutory language does not compel such a conclusion and
Congress has not otherwise expressly indicated that such a result
should ensue. See Santa Anita Consolidated, Inc. v.
Commissioner, 50 T.C. 536, 560 n.13 (1968); cf. Stephenson Trust
v. Commissioner, 81 T.C. 283, 298-299 (1983); see also Reise v.
Commissioner, 35 T.C. at 578. Compare Marquis v. Commissioner,
49 T.C. 695, 699 (1968), discussing the situation where, after
Congress imposed a specific limitation on the amount of
deductible charitable contributions, Congress made clear, by
statutory provision, that such limitation applied as well to the
nondeductibility of charitable contributions as ordinary and
necessary business expenses under section 23(a)(2) of the
Internal Revenue Code of 1939. Our reluctance is reinforced by
the fact that the conference committee report makes it clear, at
the outset, that personal interest does not include "interest
incurred or continued in connection with a trade or business".
H. Conf. Rept. 99-841, supra at II-154, 1986-3 C.B. (Vol. 4) at
154; see also S. Rept. 99-313 at 804-806 (1986), 1986-3 C.B.
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