A Tax Court Summary Opinion of June 26 on the mortgage interest deduction for 2019 when the taxpayer’s aggregate mortgage debt on their principal and second homes exceeded the debt limit included a subtle reminder about the role of IRS publications to support positions taken on tax returns. [McNamara, TC Summary Opinion 2023-22 (6/26/23)]

The taxpayer’s second home was only owned for 5 months of the year but in calculating the allowable mortgage interest deduction, performed the calculation as if owned 12 months. The taxpayer said they relied on IRS Publication 936, Home Mortgage Interest Deduction. The court relied on IRC Section 163(h) and related regulations, which it found “unambiguous” in determining the deduction as the IRS determined.

In noting that reliance on the IRS publication was “misguided,” the court added: See Miller, 114 TC 184, 195 (2000) which explains “that administrative guidance is not binding on the Court when the plain meaning of a statute is clear.” But the court did not include the quote on page 195 of that case. Here is is:
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