Ellen borrowed $50,000 from her parents for a down payment on the purchase of a new home.

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Ellen borrowed $50,000 from her parents for a down payment on the purchase of a new home. She paid interest of $3,200 in 2011, $0 in 2012, and $9,000 in 2013. The IRS disallowed the deduction. What explanation can you offer for the disallowance?

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South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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Question Posted: Jan 04, 2017 06:26 AM

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Ellen borrowed $50,000 from her parents for a down payment on the purchase of a new home.

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Because of the irregular patterns of interest payments it doe...View the full answer

South Western Federal Taxation 2014 Comprehensive Volume

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