- 9 - exclusive to the rental of vacation homes. Section 280A(a) states the general rule disallowing deductions “with respect to the use of a dwelling unit which is used by the taxpayer during the taxable year as a residence.” A taxpayer’s primary residence in which he lives year round falls within this definition. Sec. 280A(d). If Congress had intended for section 280A to apply only to the rental of vacation homes, they were capable of creating such result. Moreover, the legislative history of section 280A establishes that Congress wanted to prevent taxpayers from converting nondeductible personal living expenses into deductible business expenses. S. Rept. 94-938 (1976), 1976-3 C.B. (Vol. 3) 49. The underlying rationale of the statute is just as relevant for taxpayers renting portions of their primary residence and attempting to deduct personal living expenses as it is for taxpayers renting their vacation homes. Petitioners next argue that the limitation of section 280A(c)(5) does not apply to them “by virtue of the terms of section 280A(c)(3) which excepts ‘rental of the dwelling unit or portion thereof.’” This argument is without merit. Section 280A(c)(3) excepts rental use from the application of section 280A(a). Respondent does not contend that petitioners are not entitled to deduct any of the expenses attributable to the rental of a portion of their dwelling unit pursuant to section 280A(a),Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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