September 2015

Emily Kingston’s 9th Circuit win analyzed in Spidell’s Federal Taxletter


Home mortgage interest limit determined on per-taxpayer basis

By Tim Hilger, CPA

The Court of Appeals for the Ninth Circuit, in reversing a Tax Court decision, has concluded that the home mortgage interest limitations under IRC 163(h)(3) are applied on a per-taxpayer basis, and not a per-residence basis, as previously ruled by the Tax Court. Thus, unmarried co-owners are collectively limited to a deduction for interest paid on $2 million of acquisition indebtedness and $200,000 of home equity indebtedness.

Federal TaxLetter, October, 2015

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