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Section 212(2) allows as a deduction all the ordinary and
necessary expenses paid or incurred during the taxable year for
the management, conservation, or maintenance of property held for
the production of income. Section 262(a) provides that no
deduction shall be allowed for personal, living, or family
expenses.
Section 280A(a) generally provides that no deduction shall
be allowed with respect to the use of a dwelling unit which is
used by the taxpayer during the taxable year as a residence.
Congress enacted section 280A in the Tax Reform Act of 1976, Pub.
L. 94-455, sec. 601, 90 Stat. 1520, 1569, as its response to the
concern that the rental of property used as a residence "afforded
the taxpayer unwarranted opportunities to obtain deductions for
expenses of a personal nature." Bolton v. Commissioner, 77 T.C.
104, 108 (1981), affd. 694 F.2d 556 (9th Cir. 1982). For
purposes of section 280A(a), a taxpayer uses a dwelling unit as a
residence during the taxable year if he uses it for personal
purposes for a number of days which exceeds the greater of 14
days or 10 percent of the number of days during such year that it
is rented at a fair rental. See sec. 280A(d)(1). As pertinent
in this case, a taxpayer is deemed to have used a dwelling unit
for personal purposes on any day that it is used for personal
purposes by any member of the taxpayer's family, unless the
family member rents the dwelling unit at a fair rental for use as
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Last modified: May 25, 2011