- 6 - least a portion of the “home mortgage interest” expense deduction is allowed. In general and simply put, a taxpayer is entitled to a deduction for qualified residence interest (referred to on the Schedule A as “home mortgage interest”). Sec. 163(h)(2)(D). In this case, petitioner has failed to establish that any such interest has been paid. She produced a copy of a mortgage, but the instrument shows that the underlying indebtedness is payable “on demand”. Assuming, without finding, that the real estate subject to the mortgage is a “qualified residence” within the meaning of section 163(h)(3) and (4), it remains that petitioner has not produced any documents evidencing that any payments on the mortgage had been made during the year in issue. Petitioner is not entitled to the deduction for home mortgage interest claimed on the Schedule A included with the unprocessed amended return. That being so, as noted above, we need not consider whether petitioner is entitled to the deductions for State income taxes and gifts to charity because the total of those two claimed deductions, even if allowed in full, would be less than the standard deduction. 2. Schedule C Items In general, a taxpayer is entitled to a deduction for all ordinary and necessary business expenses. Sec. 162(a). The types of deductions claimed on the Schedule C included with thePage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011