This section contains the nature of the case and procedural background.

Cathcart (D) got a net proceeds mortgage loan. The face amount was $57,600 with a 7% rate for 29 years. Ds got $55,039.92 in actual proceeds at closing. The $2,560.68 was used to pay for various fees and services and also included a $1,086.60 charge for points against the loan. D argued that these points, as charged, were in fact interest charges against the loan and deducted them in the tax year they were incurred. The IRS claims that D must prorate the points over the life of the loan.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.