TAX COURT OPINION

Case: Bonnie L. Duncan
Docket Number: 7114-06S
Judge: Foley
Opinion Type: summary
Filed: 05/31/2007
Pages: 4

T .C . Summary Opinion 2007-8 9 UNITED STATES TAX COURT BONNIE L . DUNCAN, Petitioner v . COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No . 7114-06S . Filed May 31, 2007 . Bonnie L . Duncan, pro se . Michael Bitner , for respondent . FOLEY, Judge : This case was heard pursuant to the provisions of section 74631 of the Internal Revenue Code in effect when the petition was filed . Pursuant to section 7463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any othe r 1 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year in issue . SERVED MAY 3 1 2007 - 2 - case . The issues for decision are whether petitioner is entitled to mortgage interest and charitable contribution deductions . Backgroun d Petitioner is the founder of All Creatures Animal Sanctuary and Fellowship Church (All Creatures), an organization located in Hillsboro, Missouri . All Creatures' mission is to house and support abandoned and neglected animals . Petitioner, in 2002 and 2005, created All Creatures as a nonprofit corporation, but on both occasions, the corporation was administratively dissolved for failure to file an annual report . On January 16, 2007, the Missouri Secretary of State received a request from petitioner for reinstatement of nonprofit status for All Creatures . To finance the sanctuary, petitioner took several mortgages on her personal residence from multiple banking institutions . On her 2001 and 2002 Federal income tax returns, petitioner reported mortgage interest deductions of $42,060 and $39,660, respectively . Additionally, petitioner reported charitable contribution deductions in 2001 and 2002 of $37,258 and $29,545, respectively . On January 11, 2006, respondent issued petitioner a notice of deficiency relating to 2001 and 2002 . Respondent determined that petitioner did not substantiate the mortgage interest and charitable contribution deductions . On April 11, 2006, petitioner, while residing in Florissant, Missouri, filed her petition with the Court . - 3 - Discussion Petitioner contends that she should be allowed a mortgage interest deduction relating to payments she allegedly made to Westco Investments . She does not dispute respondent's disallowance of deductions relating to payments made to other banks . In addition, petitioner contends that she is entitled to the charitable contribution deductions because she paid all expenses on behalf of All Creatures, an organization she contends is a tax-exempt charitable organization pursuant to section 501(c)(3) . Respondent contends that petitioner has not substantiated her mortgage interest and charitable contribution deductions . Pursuant to section 163(h)(3), a taxpayer is entitled to deduct qualified residence interest but must maintain sufficient records to substantiate the amounts of the deduction . See sec . 6001 ; sec . 1 .6001-1(a), Income Tax Regs . Petitioner has failed to do so . In addition, petitioner has failed to substantiate her charitable contribution deductions . Accordingly, we sustain respondent's determinations . ' 2 Sec . 7491(a) is inapplicable because petitioner failed to introduce credible evidence within the meaning of sec . 7491(a)(1) . Contentions we have not addressed are irrelevant, moot, or - 4 - meritless . To reflect the foregoing, Decision will be entered for respondent .