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any payments on the residence for the 12 years preceding the years
at issue that they and their family resided in the home, and
petitioners did not indicate they had entered into any agreement
with their father or uncle that would entitle them to an ownership
interest in the home. See Trans v. Commissioner, supra; Uslu v.
Commissioner, supra.
We therefore sustain respondent’s determination disallowing
Gabriel and Morhaf’s mortgage interest deductions in 1995.
On March 20, 1996, Mahmoud executed a gift deed transferring
one-fifth of his one-half interest in the Foster City residence,
which gave Gabriel and Morhaf each an undivided one-twentieth
legal interest in the Foster City residence. Morhaf’s 1996 tax
year is not at issue, but Gabriel contests respondent’s
disallowance of a deduction for all but 5 percent of the mortgage
interest paid on the residence in 1996. The issue we must resolve
is whether Gabriel is entitled to a mortgage interest deduction
larger than his proportionate share.
Generally, a taxpayer may deduct more than his proportionate
share of mortgage interest arising from property held as a tenant
in common where the taxpayer paid such expenses to avoid personal
liability or to preserve his interest in the property he holds as
a tenant in common. See Powell v. Commissioner, T.C. Memo. 1967-
32; Conroy v. Commissioner, T.C. Memo. 1958-6. We have found,
however, that a taxpayer was not entitled to deduct more than his
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