- 4 -
Discussion
Because petitioners did not comply with the requirements of
section 7491(a), section 7491 is inapplicable here.
Tax Year 1999
Section 280A, Disallowance of Certain Expenses in Connection
With Business Use of Home, Rental of Vacation Homes, etc., limits
otherwise allowable deductions by individuals with respect to a
dwelling unit that is used by the taxpayer during the year as a
"residence". The provision does not apply to deductions for
amounts allowable without regard to the taxpayer's income
producing activity, such as interest and taxes. Sec. 280A(b).
A taxpayer uses a dwelling as a "residence" if his personal
use exceeds the greater of 14 days or 10 percent of the days it
is rented at fair rental value during the year. Sec. 280A(d)(1).
Petitioners used the Tahoe property themselves for 8 days during
1999. They rented the property for 25-1/2 days for total gross
rentals of $1,400, or an average of $54.90 per day. The parties
stipulated evidence indicating that the minimum daily fair rental
value of the property was $65 per day. Every day that a dwelling
unit is rented at less than fair rental value is deemed used by
the taxpayer for "personal purposes". Sec. 280A(d)(2)(C).
Petitioners' personal use of the property in 1999 was 33-1/2
days. Sec. 280A(d)(2)(A), (C).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011