tac court ruling

Celebrity psychiatrist Charles Sophy and his S.O. lost in U.S. Tax Court last week. The judge ruled that deductible interest on the two homes that the couple own together be limited to $1.1 million. At issue was whether or not the limits applied per person or per residence. This limit applies even if the co-owners are unmarried and file separate tax returns.  This is the first court ruling on the matter since the IRS issued a memo on the subject in 2009. The court ruling affirms the IRS memo.