Deductibility of interest paid to former spouse

In Ronald R. Armacost and Cathy L. Armacost v. Commissioner, a taxpayer received more property than his wife in their separation agreement so he gave her a promissory note with a stated interest rate of 10%. The Tax Court held that the investment interest exception applied in this case.

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Bibliographic Details
Published in:Journal of Accountancy 1998-10, Vol.186 (4), p.19
Main Authors: Quinn, Tina Steward, Flesher, Tonya K
Format: Magazinearticle
Language:English
Subjects:
Community property
Debt
Divorce
Divorce settlements
Divorced people
Interest costs
Interest deductions
Laws, regulations and rules
State court decisions
Tax court decisions
Tax courts
Tax deductions
Taxation
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Description
Summary:In Ronald R. Armacost and Cathy L. Armacost v. Commissioner, a taxpayer received more property than his wife in their separation agreement so he gave her a promissory note with a stated interest rate of 10%. The Tax Court held that the investment interest exception applied in this case.
ISSN:0021-8448
1945-0729