Frank Shih, Jr. - Page 7

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          except as otherwise provided in that section, in the case of a              
          taxpayer who is an individual, no deduction otherwise allowable             
          under chapter 1 of the Internal Revenue Code is allowable "with             
          respect to the use of a dwelling unit which is used by the                  
          taxpayer during the taxable year as a residence."  Deductions               
          that are attributable to the rental use of the dwelling unit, or            
          a portion thereof, are excepted from the blanket disallowance of            
          section 280A(a) and can be deducted subject to the limitations              
          imposed by subsections (c)(5) and (e) of section 280A.  Sec.                
          280A(c)(3).                                                                 
               For purposes of section 280A, the test for determining                 
          whether a taxpayer is considered to have used a dwelling unit as            
          a residence is set forth in section 280A(d)(1).  Pursuant to that           
          section, a taxpayer uses a dwelling unit as a residence if he or            
          she uses the unit (or portion thereof) for personal purposes for            
          a number of days which exceeds the greater of 14 days or 10                 
          percent of the number of days during the year for which the unit            
          is rented at a fair rental.  Thus, if, during the taxable year, a           
          taxpayer uses a dwelling unit for rental purposes and also uses             
          the dwelling unit for personal purposes for a number of days in             
          excess of the number specified in section 280A(d)(1), as                    
          petitioner did in this case during 1991, the taxpayer is deemed             
          to have used the dwelling unit as a residence, and section                  
          280A(c)(5) applies to the deductions attributable to the rental             
          use.                                                                        




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