Through a Glass, Darkly: Sophy, Voss and Statutory Interpretation of the Internal Revenue Code

Abstract

The paper discusses competing interpretations of an element of IRC Section 163(h), the home mortgage interest deduction indebtedness limitation, by the Tax Court and Ninth Circuit Court of Appeals. Tax practitioners may be interested in the central interpretative issue - whether that limitation should be determined on a per taxpayer or per residence basis. The jurisdictional reach of the Tax Court and the Ninth Circuit is implicated as similarly qualified taxpayers may expect different results in litigation based on geography. The expectation of differing results in litigation also may implicate tax return preparation standards. Finally, the facts center around the anomalous tax treatment of an unmarried homosexual couple which may be of interest to gay and lesbian civil rights scholars.

Keywords: Tax, Home Mortgage Interest, Statutory Interpretation, Jurisdiction, Tax Litigation, Tax Return Preparation, Gay, Lesbian

JEL Classification: H20, H21, H24