Tax Court In Brief | Shilgevorkyan v Comm'r | Deficiency For Disallowed Mortgage Interest Deduction; Qualified Residence Interest

• Jurisdiction: United States,Federal
• Law Firm: Freeman Law
• Subject Matter: Finance and Banking, Real Estate and Construction, Tax, Charges, Mortgages, Indemnities, Financial Services, Real Estate, Income Tax, Tax Authorities
• Author: Freeman Law
• Published date: 08 February 2023

The Tax Court in Brief - January 23rd - January 27th, 2023

Freeman Law

's 'The Tax Court in Brief' covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation: The Week of January 23rd, 2022, through January 27th, 2023

• Lim v. Comm'r, T.C. Memo. 2023-11| January 23, 2023 | Lauber, J | Dkt. No. 14015-20
• Freman v. Comm'r, T.C. Memo. 2023-10| January 23 2023 |Jones, J. | Dkt. No. 8895-20
• Belton v. Comm'r, T.C. Memo. 2023-13| January 24, 2023 |Toro, J. | Dkt. No. 22438-19P
• Adams v. Comm'r, 160 T.C. No. 1| January 24, 2023 | Toro, J. | Dkt No. 1527-21P
• Mulu v. Comm'r, T.C. Summary Opinion 2023-2| January 25, 2023 | Leyden, J. | Dkt. No. 12975-21S
• Aragoni v. Comm'r, T.C. Summary Opinion 2023-3| January 25, 2023 | Panuthos, J. | Dkt. No. 20914-21S
• Johnson v. Comm'r, 160 T.C. No. 2| January 25, 2023 |Nega, J. | Dkt. No. (Consolidated) 19973-18, 19975-18, 19978-18, 20001-18

Shilgevorkyan v. Comm'r, T.C. Memo. 2023-12| January 23, 2023 | Ashford, J. | Dkt. No. 9247-15

Summary: This is a deficiency case involving taxpayer Hrach Shilgevorkyan (Petitioner) and the IRS's disallowance of a mortgage interest deduction for tax year 2012. In 2005 Edvard, Petitioner's brother, purchased the property in issue in Paradise Valley, Arizona for $1,525,000, making a $392,896 down-payment and obtaining a $1,143,750 bank loan from Wells Fargo. Edvard and his wife, Lusine, were the borrowers. Edvard, Lusine, and Artur (Petitioner's other brother) took out a $1,200,000 construction loan. Both loans were secured by the Paradise Valley property. The construction loan funds were used to construct a house and a separate guest house on the property. In 2006 and again in 2008, Edvard, Lusine, and Artur refinanced with Wells Fargo. The disclosures and deed of trust contained representations and prohibitions of transfers made without Wells Fargo's consent, and the deed of trust further stated that the Paradise Valley property would be the borrower's principal residence for at least one year unless the lender agreed. Artur executed a quitclaim deed in 2010, which conveyed all his interest in the property to Petitioner. No request was made to Wells Fargo to approve the conveyance. Petitioner did not pay Artur in exchange for the quitclaim deed. During 2012 Petitioner made no payments to Wells...