Antonio G. and Bonnie L. Montoya - Page 5

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          his mother’s death, in a corresponding reduction in his                     
          testamentary share of his mother’s estate.                                  
               Petitioners’ $4,841 interest expense deduction is the amount           
          listed on a 1998 Mortgage Interest Statement issued by Washington           
          Mutual.  That statement shows that the payer/borrower is                    
          petitioner’s mother’s trust, for which petitioner’s mother is the           
          designated trustee.  The address on the statement is petitioners’           
          address.                                                                    
               Petitioner offered an American Savings Bank Federal Truth-             
          in-Lending Disclosure Statement dated August 23, 1994.  The                 
          underlying loan appears to be the loan for which the Washington             
          Mutual Interest Statement was issued.  The American Savings Bank            
          Statement shows petitioner’s mother as the sole borrower of a               
          secured mortgage loan against property owned by her.                        
               Petitioner is neither directly liable on the note securing             
          the mortgage on his mother’s property, nor is he a legal or                 
          equitable owner of the property.                                            
               Assuming, arguendo, that petitioner made the monthly                   
          payments of interest on his mother’s mortgage, under the cases              
          cited above he is not entitled to deduct those interest payments.           
          We sustain respondent’s determination on this issue.                        
               Section 162(a) allows a deduction for ordinary and necessary           
          expenses paid or incurred during the taxable year in carrying on            
          a trade or business.  Taxpayers must maintain sufficient records            






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