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respondent contends that petitioners are not entitled to the
claimed rental expense deductions for 1997 because petitioners
have failed to establish that those deductions are not disallowed
by section 280A.
Section 280A(a) provides:
SEC. 280A. DISALLOWANCE OF CERTAIN EXPENSES IN
CONNECTION WITH BUSINESS USE OF HOME,
RENTAL OF VACATION HOMES, ETC.
(a) General Rule.--Except as otherwise provided in
this section, in the case of a taxpayer who is an
individual * * *, no deduction otherwise allowable
under this chapter 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.
Section 280A(b) provides:
(b) Exception for Interest, Taxes, Casualty
Losses, Etc.–-Subsection (a) shall not apply to any
deduction allowable to the taxpayer without regard to
its connection with his trade or business (or with his
income-producing activity).
A “dwelling unit” is defined to include a house, apartment,
condominium, or similar property. Sec. 280A(f)(1)(A). On the
record before us, we find that the Doon Way residence constitutes
a dwelling unit within the meaning of section 280A.
14(...continued)
claimed as a deduction for each such category in Schedule E of
their 1997 joint return. Although petitioners did not claim
rental expense deductions in their 1997 joint return for legal
fees, supplies, and automobile and travel, petitioners introduced
into the record at trial certain checks in an attempt to estab-
lish that during 1997 they incurred certain expenses for each
such category of expense. It is not clear whether respondent is
conceding the total amount of rental expenses that petitioners
claimed in Schedule E of their 1997 joint return or some other
amount. In any event, in light of our findings below, we need
not decide the exact amount of rental expenses that respondent
concedes petitioners paid during 1997.
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