Seymour v. Commissioner
United States Tax Court
P deducted the amount of interest paid to his former spouse on an indebtedness which he incurred incident to their divorce. P claimed that the indebtedness was properly allocable to investment, passive activity, and qualified residence indebtedness based on certain assets acquired pursuant to a decree of divorce.
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P deducted the amount of interest paid to his former spouse on an indebtedness which he incurred incident to their divorce. P claimed that the indebtedness was properly allocable to investment, passive activity, and qualified residence indebtedness based on certain assets acquired pursuant to a decree of divorce. R disallowed such deduction on the ground that sec. 1041, I.R.C., requires P's interest expense to be characterized as personal interest under sec. 163(h)(1), I.R.C. HELD: Sec. 1041, I.R.C., has no relevance to the proper characterization of interest on indebtedness incurred incident…
1Opinion of the Court
Ruwe, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes and additions to tax as follows:
Additions to tax
Year Deficiency Sec. 6651(a)(1) Sec. 6654(a)
$116,819 $926 $2,910 1 CD CD bO
100,290 - - - 1,749 I — 1 CD CD CO
After concessions, the issues for decision are: (1) Whether interest petitioner paid to his former spouse pursuant to a decree of divorce is nondeductible personal interest under section 163(h)(1);1 and (2) whether petitioner is liable for the additions to tax under section 6654(a) for the taxable years 1992 and 1993.
FINDINGS OF FACT
Some of the facts have…
2Cases cited7 opinions
- Grosshandler v. CommissionerUnited States Tax Court · 1980
- Rowan Cos. v. United StatesSupreme Court of the United States · 1981
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Niedringhaus v. CommissionerUnited States Tax Court · 1992
- Estate of Jalkut v. CommissionerUnited States Tax Court · 1991
2 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Armacost v. CommissionerUnited States Tax Court · 1998
- Carol M. Read v. CommissionerUnited States Tax Court · 2000
- John L. Seymour v. CommissionerUnited States Tax Court · 1997
- Read v. CommissionerUnited States Tax Court · 2000
- Read v. CommissionerUnited States Tax Court · 2000
1 more not listed; retrieve them via the Exa API.