Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 15

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          Loan Origination Fees and Mortgage Interest in 1989 and 1990                
               The Dickersons contend that they are entitled to a deduction           
          of $2,199 for loan origination fees incurred to purchase the                
          Green Ridge residence in 1989.  Additionally, the Dickersons                
          argue that they are entitled to deductions for mortgage interest            
          of $4,012 and $8,779 for the years 1989 and 1990, respectively.             
          Respondent contends that they are not entitled to these                     
          deductions because they were not made on a qualified residence              
          within the meaning of section 163(h)(2)(D).  Section 163(h)(2)(D)           
          allows a deduction for any qualified residence interest.  Section           
          163(h)(3)(A) provides, inter alia, that qualified residence                 
          interest includes acquisition indebtedness with respect to any              
          qualified residence of the taxpayer.  A qualified residence                 
          includes the principal residence of the taxpayer as well as one             
          other residence which is used by the taxpayer as a residence.               
          Sec. 163(h)(4)(A).  This includes use by a family member,                   
          including a grandson.  Secs. 280A(d)(2)(A), 267(c)(4).  Michoff,            
          Jr., the Dickerson's grandson, lived in the Green Ridge residence           
          during 1989 except for the months the residence was rented to the           
          Barretts.  The Green Ridge residence therefore qualifies as a               
          qualified residence during 1989.  Because the residence was used            
          by a family member for the requisite number of days during the              
          year, the Dickersons have established that they are entitled to             

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