- 92 -
and the 1988 TAMRA language. The argument that a simple change
indicates a different meaning seems to fail in the context of
1986 TRA and 1998 TAMRA, where Congress replaced “interest paid
or accrued on indebtedness incurred or continued in connection
with the conduct of a trade or business” in section 163(h)(2)(A)
with “properly allocable”. The 1988 TAMRA conference committee
report does not indicate an intent to change the meaning or reach
of section 163(h)(2)(A). However, reverting to the plain meaning
of these two phrases, it is reasonable to assert that they have
the same meaning even though the language is different. The same
should be true for the pre-1986 TRA language.
The majority concludes that the language of section
163(h)(2)(A) is ambiguous, which requires an examination of the
legislative history of the section 163(h)(2)(A), as mandated by
Chevron U.S.A. v. Natural Res. Def. Council, 467 U.S. 837 (1984).
The Joint Statement of Managers of the Conference Report, H.
Conf. Rept. 99-841, at II-151 to II-154 (1986), 1986-3 C.B. (Vol.
4) 154, published September 18, 1986 (Conference Committee
Report), provides:
Under the conference agreement, personal interest is
not deductible. Personal interest is any interest, other
than interest incurred or continued in connection with the
conduct of a trade or business (other than the trade or
business of performing services as a employee), investment
interest, or interest taken into account in computing the
taxpayer’s income of loss from passive activities for the
year. Personal interest also generally includes interest on
tax deficiencies.
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