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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Nasty P who wrote (148)	10/28/1997 10:04:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Nasty, Re: "Per Sec 163(h) of IRC, beginning in 1991 a deduction is not allowed for personal interest expense. Then it cites examples of personal interest expense: interest on credit-card debt..." . You are incorrect. 163(h) is NOT a valid cite that says that the interest incurred on credit card debt may not be investment interest expense. Specifically see IRC 163(h)(2)(A) IRC 163(h)(2)(B) IRC 163(h)(2)(C) . As an aside, your reading of EXAMPLES within IRC 163(h) is interestingly creative, as the code actually has NO SUCH EXAMPLES! (g) . Therefore, unless you have something further to back up your claim, it stands that CREDIT CARD (VISA, MasterCard etc) INTEREST CAN INDEED BE INVESTMENT INTEREST EXPENSE. See Reg. 1.163-8T(a)(3) . Colin

To: Nasty P who wrote (148)	10/28/1997 11:56:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

Hi, I looked up Peyton G. Nevitt et ux v Comm 20 T.C. 318 and it doesn't appear to have ANYTHING to do with wash sales. . My summary says the taxpayer underreported $3,082.50 in diividends. . The point of the case seems to be the 5 year statute of limitations based on a 25%+ underreporting of gross income. . Could you clarify the case you mean, and perhaps post a summary of it? . Colin