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expense under sections 62(a)(1) or 162(a).
My conclusion is not changed by the broad interpretation
given to section 163(h)(2) by the Joint Committee in the 1986
Bluebook. I give little weight to this broad interpretation.
Flood v. United States, 33 F.3d 1174, 1178 (9th Cir. 1994);
Slaven v. BP America, 973 F.2d 1468, 1475 (9th Cir. 1992).
The 1986 Bluebook is not legislative history; it was written
after the enactment of the TRA. See Flood v. United States,
supra at 1178; McDonald v. Commissioner, 764 F.2d 322, 336-337
n.25 (5th Cir. 1985), affg. T.C. Memo. 1983-197; Mertens, Law of
Federal Income Taxation, sec. 3.20, at 31 (1994). It was not
approved by the Congress before its release. See Estate of
Hutchinson v. Commissioner, 765 F.2d 665, 669-670 (7th Cir.
1985), affg. T.C. Memo. 1984-55. It does not comport with the
text of section 163(h) or the legislative history thereunder.
I recognize that both the United States Supreme Court and this
Court have relied on the Blue Book, see, e.g., FPC v. Memphis
Light, Gas & Water Div., 411 U.S. 458, 471-472 (1973); Estate of
Sachs v. Commissioner, 88 T.C. 769, 775 (1987), affd. in part and
revd. in part 856 F.2d 1158 (8th Cir. 1988), and that it is
entitled to great respect, Estate of Hutchinson v. Commissioner,
supra at 669-670; McDonald v. Commissioner, supra at 336-337
n.25. All the same, we should not be bound by statements in the
1986 Bluebook that are unsupported by and contrary to section 163
and its legislative history.
The nuts and bolts of this case is that the Commissioner
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