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Not married? Share a mortgage? Get twice the deduction!
Topic Started: Aug 10 2015, 09:31 AM (151 Views)
George K
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Finally
http://taxprof.typepad.com/taxprof_blog/2015/08/ninth-circuit-gives-unmarried-couples-double-the-mortgage-interest-deduction-available-to-married-co.html
Quote:
 
A split Ninth Circuit panel on Friday reversed the Tax Court and held, contrary to the IRS's position, that the § 163(h)(3) limitations on the deductibility of mortgage interest ($1 million of acquisition indebtedness plus $100,000 of home equity indebtedness) are applied on a per-taxpayer basis (for a total of $2.2 of mortgage debt), as contended by celebrity psychiatrist Charles Sophy and his domestic partner, Bruce Voss, who owned homes in Beverly Hills and Rancho Mirage, California, as joint tenants. Voss v. Commissioner, Nos. 12-73257 & 12-73261 (Aug. 7, 2015). (The Tax Court had upheld the IRS's position that §163(h)(3) applies on a per-residence basis (and thus limited to $1.1 of mortgage debt. Sophy v. Commissioner, 138 T.C. 204 (2012).)

Judge Ikuta dissented:
Quote:
 
Today the majority interprets the Tax Code to allow unmarried taxpayers who buy an expensive residence together to deduct twice the amount of interest paid on the debt secured by their residence than spouses would be allowed to deduct. While the language of the relevant statute is ambiguous, the IRS has offered an interpretation that limits unmarried taxpayers in this situation to deducting the same amount as married taxpayers filing jointly. Because we should defer to this reasonable interpretation by the IRS, I dissent.
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Mikhailoh
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If you want trouble, find yourself a redhead
But surely this cannot be what Congress MEANT?!?! Don't Federal courts divine that now? Hmm?
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Copper
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Shortstop

I'm sure the scotus thought all this through before they changed the law.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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Luke's Dad
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Emperor Pengin
Anybody know how fast a no-fault divorce can be processed?
Edited by Luke's Dad, Aug 10 2015, 11:26 AM.
The problem with having an open mind is that people keep trying to put things in it.
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jon-nyc
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Cheers
Luke's Dad
Aug 10 2015, 11:25 AM
Anybody know how fast a no-fault divorce can be processed?
You really have over $1MM in mortgage debt?
In my defense, I was left unsupervised.
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Luke's Dad
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Emperor Pengin
The precedent is set...
The problem with having an open mind is that people keep trying to put things in it.
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Mikhailoh
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If you want trouble, find yourself a redhead
What price gonads?
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Axtremus
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HOLY CARP!!!
Luke's Dad
Aug 10 2015, 11:25 AM
Anybody know how fast a no-fault divorce can be processed?
Let's assume that you have (or will go get) a >$1 million mortgage. I don't think you even need to get a divorce to take advantage of the court ruling. You can simply file your tax returned separately to achieve the same result.

See, I just saved your marriage and many other readers' marriages. You're all welcome. :)
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Free Rider
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Fulla-Carp
Mikhailoh
Aug 10 2015, 11:41 AM
What price gonads?
:lol2:
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