A taxpayer was able to persuade the Tax Court, if not the IRS, that he was a real estate professional who materially participated in the rental of a triplex next door to his home in the case of Smith v. Commissioner, T.C. Summary Opinion 2014-112.

Dealing with a home mortgage interest deduction when the property is held by more than one person and those individuals are paying on the mortgage but not filing a joint income tax return creates issues when preparing the tax returns for those individuals.  While taxpayers often believe the rule is “we can split it however we want,” Chief Counsel Advice 201451027 reminds us that there are rules that apply in these situations.