Lenz v. Commissioner
United States Tax Court
In each of the years 1981, 1982, 1983, 1984, and 1986, Ps incurred investment interest expense in excess of the amount in which such interest was currently deductible under sec. 163(d), I.R.C. Ps claimed in each year a deduction for investment interest under sec. 163(d) in amounts equal to their net investment income plus $ 10,000 ($ 25,000 in 1983 and 1984) and carried over the excess to succeeding years.
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In each of the years 1981, 1982, 1983, 1984, and 1986, Ps incurred investment interest expense in excess of the amount in which such interest was currently deductible under sec. 163(d), I.R.C. Ps claimed in each year a deduction for investment interest under sec. 163(d) in amounts equal to their net investment income plus $ 10,000 ($ 25,000 in 1983 and 1984) and carried over the excess to succeeding years. The carryover amounts exceeded Ps taxable income in years 1981, 1982, 1983, 1985, and 1986. In 1987, Ps had sufficient net investment income and taxable income to take full benefit of the…
1Opinion of the Court
OPINION
Wright, Judge:
Respondent determined deficiencies in and additions to petitioners’ Federal income tax as follows:
Additions to tax
Year Deficiency Sec. 6653(a)(1)(A) Sec. 6653(a)(1)(B) Sec. 6661
1986 $13,937 $697 50% of the interest due on $13,937 $3,484
1987 51,376 2,569 50% of the interest due on $51,376 12,844
After concessions by the parties, the sole issue for our consideration is whether a taxable income limitation applies to the carryover of investment interest under section 163(d).1 Petitioners allege that the carryover of investment interest expense to succeeding years under section…
2Cases cited14 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. LockeSupreme Court of the United States · 1985
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- United States v. MerriamSupreme Court of the United States · 1923
9 more not listed; retrieve them via the Exa API.
3Cited by39 opinions
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- City of New York v. CommissionerUnited States Tax Court · 1994
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