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gifts to him. The former payment was included in the
miscellaneous itemized interest deduction claimed on petitioners'
1991 return. The latter payment is the basis for the additional
interest deduction petitioners are claiming in this proceeding.
We have previously made reference to section 163(a), which
generally allows a deduction for all interest paid or accrued
within the taxable year. However, section 163(a) is limited by
section 163(h)(1), which provides that in the case of a taxpayer
other than a corporation, no deduction shall be allowed for
personal interest. Section 163(h)(2) defines personal interest
to include any interest other than interest which arises in
connection with five specified situations, none of which is
applicable to this case.
Petitioners argue that the interest is attributable to
petitioner's trade or business, and we agree. But petitioner's
trade or business during 1991 was as an employee of Stone Jessup;
consequently, the interest is considered personal interest. Sec.
163(h)(2)(A). No doubt in petitioner's view the distinction
between Stone Jessup's trade or business and his own is less
apparent than real. (For a discussion on this point see Souris v.
Commissioner, T.C. Memo. 1996-450.) Nevertheless, petitioner
chose the form of business through which he pursued his
profession, and he is bound by the Federal income tax
consequences of his choice. See Moline Properties, Inc. v.
Commissioner, 319 U.S. 436 (1943). Accordingly, the interest
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