Harry German, Jr. And Carol German v. Commissioner, Internal Revenue Service

46 F.3d 1141 75 A.F.T.R.2d 95 -572, 95-1 USTC P 50,056 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Harry GERMAN, Jr. and Carol German, Petitioners-Appellants, v. COMMISSIONER, INTERNAL REVENUE SERVICE, Respondent-Appellee. No. 93-70439. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 14, 1994. Submission Vacated Dec. 21, 1994. Resubmitted Jan. 3, 1995. Decided Jan. 9, 1995. Before: TANG, REINHARDT, and RYMER, Circuit Judges. 1 MEMORANDUM * 2 Harry and Carol German appeal the Tax Court's determination that the Commissioner properly recaptured in 1988 interest deductions wrongly taken by the Germans in 1985 and 1987. We have jurisdiction, 26 U.S.C. Sec. 7482 (a)(1), and we affirm. 3 The Germans applied the "Rule of 78's" accrual method of tax accounting to their law student loans to deduct greater amounts in interest deductions than they in fact paid. In 1988 the Commissioner made them change to the cash method of accounting and added back into…