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Doon Way residence are not disallowed by section 280A.16
Based upon our examination of the entire record before us,
we find that petitioners have failed to carry their burden of
proving that they are entitled to deduct the respective rental
expenses claimed for 1996 and 1997.
Claimed Mortgage Interest Deduction
Respondent determined in the notice to disallow the mortgage
interest deduction of $21,846.03 that petitioners claimed in
their 1996 joint return with respect to the Doon Way residence.
On brief, respondent concedes that petitioners have established
that they are entitled for 1996 to a mortgage interest deduction
of $17,392. It is petitioners’ position that they are entitled
to deduct the entire $21,846.03 of mortgage interest that they
claimed in their 1996 joint return.
Petitioners attempted to satisfy their burden of proof with
respect to the mortgage interest deduction at issue through Ms.
Stoddard’s testimony.17 We found her testimony to be general,
16In their 1997 Schedule E, petitioners claimed rental
expense deductions for advertising, cleaning and maintenance,
insurance, utilities, and depreciation. At trial, petitioners
introduced into the record certain other checks in an attempt to
establish that they also paid, but did not deduct in their 1997
Schedule E, rental expenses for legal fees, supplies, and automo-
bile and travel. See supra note 14. On the record before us, we
find that petitioners have failed to establish that any of the
expenses claimed as a deduction for 1997 would be allowable as a
deduction whether or not the Doon Way residence was rented. See
sec. 280A(b), (e)(2).
17Petitioners did not make part of the instant record Form
1098, Mortgage Interest Statement, for 1996 with respect to the
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