- 52 -
Tax Regs., supra, is a permissible construction of section
163(h)(2)(A). We so conclude.
We have concluded that section 163(h)(2)(A) is silent or
ambiguous. We have also concluded that section 1.163-8T,
Temporary Income Tax Regs., supra, and section 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., supra, are
permissible constructions of section 163(h)(2)(A). Accordingly,
we also conclude that both regulations are not invalid. To the
extent that Redlark v. Commissioner, supra, is inconsistent
herewith, we no longer follow that opinion.
H. Petitioners’ Alternative Contention
Alternatively, petitioners contend that section 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., supra, does not
control because it relates to section 163(h)(2)(A) as enacted by
TRA 1986, not to section 163(h)(2)(A) as amended by TAMRA 1988;
section 163(h)(2)(A) as amended by TAMRA 1988 is the provision
which applies in the instant case. Respondent contends that
section 1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs., supra,
controls because the amendment to section 163(h)(2)(A) was not
intended to make any substantive change to the statute. We agree
with respondent.
As we stated in Redlark v. Commissioner, 106 T.C. at 34 n.3:
The amended language, effective for the years in
issue, was intended to conform the definition of
personal interest to the language of the related
passive loss and investment interest limitation
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