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the level of solvency--a matter with respect to which petitioner
has not presented any evidence whatsoever.
2. Real Estate Tax Deduction
Section 164(a)(1) allows as a deduction "State and local,
and foreign, real property taxes." And section 1.164-1(a)(5),
Income Tax Regs., provides generally that "taxes are deductible
only by the person upon whom they are imposed." On his return,
petitioner claimed a deduction of $24,801 for taxes on the
property, which the Commissioner disallowed. The amount thus
claimed and disallowed was one-half (rounded) of the $49,602.93
taxes paid, not by petitioner, but by the FDIC on July 10, 1991,
and August 15, 1991, after it had become the owner of the
property upon seizure of the quitclaim deed.
The Government argues that "petitioner no longer owned the
property, and he is thus not entitled to a deduction for the
taxes paid by the FDIC". The Government's position would be
correct, Mogg v. Commissioner, 15 T.C. 133 (1950), but for the
provisions of subsequently enacted section 164(d).
Section 164(d) became law upon enactment of the 1954 Code.
Petitioner relies upon section 164(d). Applicable portions of
section 164(d) are set forth in the margin.4
4 Sec. 164(d)
(d) Apportionment of Taxes on Real Property Between Seller
and Purchaser.--
(continued...)
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