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On May 3, 2004, respondent mailed to petitioner a notice of
deficiency in the amount of $2,726 with regard to petitioner’s
2000 Federal income tax return in which respondent determined
that $3,127 of the $19,500 petitioner received from RRB and the
$22,230 received from UCLI constituted taxable income to
petitioner. Respondent also determined that petitioner was
liable for a section 6651(a)(1) failure to file addition to tax
and a section 6654(a) addition to tax for failure to make
estimated tax payments.
For 2000, petitioner does not dispute the income adjustments
relating to the funds received from RRB and UCLI. Petitioner,
however, argues that he should be able to deduct as mortgage
interest and as real property taxes a portion of the payments he
made in 2000 relating to the property.
OPINION
Interest and Property Tax Payments
Under section 163, interest paid on a mortgage relating to a
qualified residence generally is deductible. Sec. 163(h)(2) and
(3). For the mortgage interest to be deductible by a particular
taxpayer, the mortgage must be the obligation of the taxpayer
claiming the deduction, not the obligation of another. Golder v.
Commissioner, 604 F.2d 34, 35 (9th Cir. 1979), affg. T.C. Memo.
1976-150. However, under section 1.163-1(b), Income Tax Regs.,
even though property may not be in a taxpayer’s name, as long as
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