Conrad Fitzgerald Lewis - Page 21

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               A.  Home Mortgage Interest                                             
               As stated above, respondent disallowed petitioner’s claimed            
          deduction of $7,134 for home mortgage interest paid during                  
          taxable year 2000.  Respondent contends that petitioner is not              
          entitled to any of the claimed deduction because the house was              
          purchased and encumbered by a mortgage in Ms. Lewis’s name and              
          titled in Ms. Lewis’s name.  Petitioner testified that the house            
          was in Ms. Lewis’s name because of his bad credit history.                  
               As pertinent here, section 163(a) and (h)(1) allows an                 
          individual a deduction for all interest paid within the taxable             
          year on indebtedness, except for personal interest.  Qualified              
          residence interest is excluded from the definition of personal              
          interest and thus is deductible under section 163(a).  See sec.             
          163(h)(2)(D).  Qualified residence interest is any interest which           
          is paid or accrued during the taxable year on acquisition                   
          indebtedness or home equity indebtedness.  See sec. 163(h)(3)(A).           
          Acquisition indebtedness is any indebtedness secured by the                 
          qualified residence of the taxpayer or incurred in acquiring,               
          constructing, or substantially improving the qualified residence.           
          See sec. 163(h)(3)(B).  The indebtedness generally must be an               
          obligation of the taxpayer and not an obligation of another.  See           
          Golder v. Commissioner, 604 F.2d 34, 35 (9th Cir. 1979), affg.              
          T.C. Memo. 1976-150.                                                        

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