- 169 -
exceed the value of the property securing it. See, e.g.,
Brannen v. Commissioner, 722 F.2d 695 (11th Cir. 1984);
Estate of Franklin v. Commissioner, 544 F.2d 1045 (9th
Cir. 1976).
As mentioned above, petitioners introduced no evidence
of the value of any of the properties as of February 1,
1985. There is no evidence to show that the fair market
values of the properties on February 1, 1985, exceed the
aggregate indebtedness secured by the property at that
time, except in the case of the property at 4850 West
Ferret Drive, as to which respondent's evidence shows that
the fair market value exceeds the amount of the debt, and
except in the case of the properties at 5419 Heronwood
Drive, 5411 Heronwood Drive, 4107 Medical Drive, and 13739
Earlywood Drive, as to which the discrepancies between the
fair market value of the property and the amount of the
debt are negligible. Accordingly, we hereby sustain
respondent's adjustment disallowing any interest deduction
claimed by EA 84-III on its 1985 return attributable to the
remaining 11 promissory notes payable to CSL issued by EA
84-III on February 1, 1985.
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