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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),
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