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his principal residence. See sec. 280A(d)(2)(A) and (3)(A);
Kotowicz v. Commissioner, T.C. Memo. 1991-563.
Since the Charitys paid only $500 per month for their use of
2117 Hollins Court as their principal residence and its fair
rental value was at least $600 per month (based on Eagle Realty's
1988 estimate), their personal use of 2117 Hollins Court is
treated as petitioners' personal use for every day of the taxable
years in issue. Thus, under section 280A(d)(1), 2117 Hollins
Court was used by petitioners as a residence during the taxable
years in issue. See Dinsmore v. Commissioner, T.C. Memo. 1994-
134, affd. in part and remanded in part without published opinion
78 F.3d 592 (9th Cir. 1996). Accordingly, section 280A(a) is
generally applicable to the amounts in issue.
Section 280A(a) does not, however, apply to any item which
is attributable to the rental of the dwelling unit, as determined
under section 280A(e). See sec. 280A(c)(3). Section 280A(e)(1)
provides that, where an individual uses a dwelling unit for
personal purposes for any day during the taxable year, the amount
deductible with respect to the expenses attributable to the
rental of the dwelling unit for the taxable year shall not exceed
an amount which bears the same relationship to such expenses as
the number of days during each year that the unit is rented at a
fair rental bears to the total number of days during such year
that such unit is used.
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