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to petitioner’s law practice), under section 163(a) and (h), the
related $1,527,695 in interest paid on those tax liabilities is
likewise allocable to petitioner’s trade or business and should
be deductible.
Petitioners cite Redlark v. Commissioner, 106 T.C. 31
(1996), revd. and remanded 141 F.3d 936 (9th Cir. 1998), and
Kikalos v. Commissioner, T.C. Memo. 1998-92, revd. 190 F.3d 791
(7th Cir. 1999), and a body of presection 163(h) caselaw (see
Reise v. Commissioner, 35 T.C. 571 (1961), affd. 299 F.2d 380
(7th Cir. 1962), Polk v. Commissioner, 31 T.C. 412 (1958), affd.
276 F.2d 601 (10th Cir. 1960), and Standing v. Commissioner,
28 T.C. 789 (1957), affd. 259 F.2d 450 (4th Cir. 1958)), in which
cases it was held that individual taxpayers were entitled to
deduct interest on their Federal income tax liabilities relating
to income from a sole proprietorship business.
After trial and the filing of briefs in this case, we
decided Robinson v. Commissioner, 119 T.C. 44 (2002), which also
involved the deductibility of interest paid by an individual
taxpayer to respondent with respect to the taxpayer’s Federal
income tax liability relating to income from the taxpayer’s law
practice. In Robinson, we concluded that section 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., supra, is valid, that
presection 163(h) caselaw was inapplicable, that we would no
longer follow our opinion in Redlark v. Commissioner, 106 T.C. 31
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