109 T.C. No. 14
UNITED STATES TAX COURT
JOHN L. SEYMOUR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 2575-96. Filed November 5, 1997.
P deducted the amount of interest paid to his
former spouse on an indebtedness which he incurred
incident to their divorce. P claimed that the
indebtedness was properly allocable to investment,
passive activity, and qualified residence indebtedness
based on certain assets acquired pursuant to a decree
of divorce. R disallowed such deduction on the ground
that sec. 1041, I.R.C., requires P's interest expense
to be characterized as personal interest under sec.
163(h)(1), I.R.C.
Held: Sec. 1041, I.R.C., has no relevance to the
proper characterization of interest on indebtedness
incurred incident to divorce.
Thomas J. Thomas, for petitioner.
Leonard T. Provenzale, for respondent.
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