Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 100

David Dental, DDS, and his unmarried partner Sally Surgeon, MD have lived together for the past five years. Both are at the peak of their careers and decide to buy a new "show case" home in La Jolla, California. After looking at several homes in the area, they buy one for $2 million. They put a 20 percent down payment ($400,000) on the house and finance the balance ($1.6 million). Each takes out a separate mortgage for $800,000 for a total $1.6 million. There is no additional debt (e.g., a home equity loan) on the residence.
a. Locate the chief counsel advice (CCA) that deals with this situation. Give the CCA citation.
b. Review the CCA. Does it raise a need for new information or authority to solve this question
c. Are you able to reach a conclusion about the research question from this CCA If so, what is your conclusion(s)