Herbert L. Whitehead and Jennifer L. Whitehead - Page 53




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          during the years at issue.46  The record belies Essie Whitehead’s           
          testimony that she had the purported general arrangement with Mr.           
          Whitehead during the years at issue that she described and that             
          Mr. Whitehead acted in accordance with any such purported general           
          arrangement.                                                                
               On the record before us, we find that petitioners have                 
          failed to show that Mr. Whitehead paid funds to Essie Whitehead             
          during the years at issue subject to the requirement that she use           
          those funds solely to make the monthly mortgage payment on the              
          Kirkland property and not for any use she desired.  On that                 
          record, we further find that petitioners have failed to show that           
          Essie Whitehead used any portion of the amounts that Mr. White-             
          head paid to her during the years at issue to make the monthly              
          mortgage loan payment on the Kirkland property.47                           
               Based on our examination of the entire record before us, we            
          find that petitioners have failed to establish that they are                
          entitled to a deduction for each year at issue for any mortgage             
          interest and property taxes relating to the Kirkland property.              
          Petitioners’ Claimed IRA Deduction                                          
               Respondent determined to disallow the deduction that peti-             

               46Mr. Whitehead made no payments to Essie Whitehead in                 
          January 1996, May 1997, June 1997, and November 1997.                       
               47In light of our findings, we shall not address respon-               
          dent’s contention with respect to whether the mortgage interest             
          at issue constitutes qualified residence interest under sec.                
          163(h)(3).                                                                  





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