Should there be a separate limit on personal residence indebtedness for co-owners that are unmarried? According to the Tax Court, that answer is a resounding no.

Unmarried taxpayers argued recently that each co-owner of a residence should be subject to a separate $1.1 million limit on the amount of mortgage debt for which interest can be deducted under Sec. 163 (h)(3).

The Tax Court upheld their ruling that the limit applies per residence, not per taxpayer, as married taxpayers are clearly subject to a joint limitation.