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expenditure as personal interest for purposes of section 163(h).
Sec. 1.163-8T(b)(5), Temporary Income Tax Regs., supra.
As previously noted, section 1.163-8T(c)(3)(ii), Temporary
Income Tax Regs., 52 Fed. Reg. 25001 (July 2, 1987), allocates
petitioners’ payment of interest on their 1987 Federal individual
income tax underpayment to the satisfaction thereof. The
treatment of petitioners’ interest payment thus depends on
whether the payment of one’s Federal individual income tax
liability is an expenditure that is “in connection with the
conduct of any trade or business”. While reasonable arguments
may lie on either side of this issue, the Secretary has
undertaken to resolve it in promulgating section 1.163-9T(b)(2),
Temporary Income Tax Regs., 52 Fed. Reg. 48409 (Dec. 22, 1987),
and it is our charge not to resolve that issue ourselves, but
rather to determine “whether there is any reasonable basis for
the resolution embodied in the Commissioner's Regulation.”
Fulman v. United States, 434 U.S. 528, 536 (1978); see also CSX
Corp. v. Commissioner, 89 T.C. 134, 153 (1987). We now turn our
attention to that task.
(b) Section 1.163-9T(b)(2)(i)(A), Temporary Income Tax
Regs., 52 Fed. Reg. 48409 (Dec. 22, 1987)
As applied to the instant case, section 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., supra, treats
petitioners’ payment of interest on their 1987 income tax
underpayment as nondeductible “personal interest”. The text of
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