Lisa Milkovich v. United States

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

LISA MILKOVICH; DANG NGUYEN, No. 19-35582 Plaintiffs-Appellants, D.C. No. v. 2:18-cv-01658-

BJR

UNITED STATES OF AMERICA,

Defendant-Appellee. OPINION

Appeal from the United States District Court for the Western District of Washington Barbara Jacobs Rothstein, District Judge, Presiding

Submitted September 1, 2020 Submission Vacated October 6, 2020 Argued and Submitted November 3, 2020 Seattle, Washington

Filed March 2, 2022

Before: Jay S. Bybee and Daniel P. Collins, Circuit Judges, and Richard G. Stearns, * District Judge.

Opinion by Judge Collins; Dissent by Judge Stearns

* The Honorable Richard G. Stearns, United States District Judge for the District of Massachusetts, sitting by designation. SUMMARY **

Tax

The panel reversed the district court’s dismissal, under Federal Rule of Procedure 12(b)(6), of a complaint by taxpayers in a tax refund action in which they sought to deduct mortgage interest that their lender received at the short sale of taxpayer’s home.

Taxpayers took out a mortgage in connection with…