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of the number of days the unit is rented at fair rental value, no
deduction is allowed. Sec. 280A(a), (d)(1). Nor may taxpayers
deduct expenses for the portion of a residence not “exclusively”
used for business purposes. See sec. 280A(c)(1), (f)(1)(B); see
also Langer v. Commissioner, 989 F.2d 294, 295 (8th Cir. 1993)
(affirming this Court’s denial of a home office deduction based
on taxpayer’s failure to show exclusive use); Byers v.
Commissioner, 82 T.C. 919, 925 (1984) (rent-free personal use of
a unit barred a finding that the unit was used exclusively as a
hotel); Grigg v. Commissioner, T.C. Memo. 1991-392, affd. 979
F.2d 383 (5th Cir. 1992). Personal use includes use by a
taxpayer’s lineal descendants, unless fair rental value is paid.
See sec. 267(c)(4).
Petitioners admit that Mr. Lofstrom’s daughter (and her
family) used the B&B rent-free for an indefinite period of time
in 1997, which constitutes personal use by petitioners. See sec.
280A(d)(2) and (3). Because petitioners have not shown how long
Mr. Lofstrom’s daughter stayed,11 petitioners have failed to meet
their burden that personal use of the B&B did not exceed the
greater of 14 days or 10 percent of the number of days that the
unit was rented at fair rental value.12 See sec. 280A(d)(1),
11Petitioners vaguely assert that she stayed on a “single
occasion.”
12Nor have petitioners carried their burden to prove that
they rented the unit for at least 15 days in 1997. See sec.
280A(g); Stoddard v. Commissioner, T.C. Memo. 2002-31 (rental
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