A divided Ninth Circuit Court of Appeals reversed the Tax Court and allowed two unmarried individuals purchasing a residence together to each deduct interest on $1 million of acquisition indebtedness and $100,000 of home equity debt.
The Court determined that the test is on a per individual basis solely and not on a per property basis (IRS subsequently announced that it will acquiesce in the decision).
I created this blog to help understand certain basic aspects of U.S. tax law. Of course, each situation is unique and nothing that is on this site will ever replace the expert advice of a tax professional.
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