Allbritton v. Commissioner

In this appeal from the Tax Court’s grant of plaintiffs-appellees’ motion for summary judgment, the defendant-appellant Commissioner of Internal Revenue (Commissioner) asserts error in the court’s determination that Section 163(d)(2) of the Internal Revenue Code permits a taxpayer to carry over and deduct investment interest expense in excess of taxable income. We review this question of law de novo. 1

The plaintiffs-appellees (Taxpayers) claimed deductions in 1985 and 1986 for carryover investment interest expense that was not deductible in 1984 under Section 163(d)(1). 2 The carryover to…