- 10 - but that they are subject to the limitation of section 280A(c)(5), which specifically applies to a use described in section 280A(c)(3) where the dwelling unit is used by the taxpayer during the taxable year as a residence. Petitioners next contend that their third floor units come within the provision of section 280A(f)(1)(B) which excludes from the limitations of section 280A that portion of a dwelling unit “used exclusively as a hotel, motel, inn, or similar establishment.” They rely on the following proposed regulation: Exception. Notwithstanding the provisions of paragraph (c)(1) of this section, the term “dwelling unit” does not include any unit or portion of a unit which is used exclusively as a hotel, motel, inn, or similar establishment. Property is so used only if it is regularly available for occupancy by paying customers and only if no person having an interest in the property is deemed under the rules of this section to have used the unit (or the portion of the unit) as a residence during the taxable year. Thus, this exception may apply to a portion of a home used to furnish lodging to tourists or to long-term boarders such as students. [Sec. 1.280A-1(c)(2), Proposed Income Tax Regs., 45 Fed. Reg. 52399, 52401 (Aug. 7. 1980) as amended by 48 Fed. Reg. 33320, 33322 (Jul. 21, 1983).] Petitioners maintain that the month-to-month tenants of their third floor units are analogous to “long-term boarders such as students”. Although proposed regulations carry no greater weight than a position advanced on brief by respondent, they may be useful as guidelines where they closely follow the legislative history of the act. Estate of Wallace v. Commissioner, 95 T.C. 525, 547Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011