given the thread regarding timeshares, what happens when a rental house is sold to a person who makes it his residence? Is the seller precluded from fully treating the property as a rental during the last (partial) year of ownership, i.e. will his deductions be limited per section 280A?
========================================= MODERATOR'S COMMENT: the intent of the buyer has no impact on the use of property by seller as rental. You may want to reread 280a.
"Gil Faver" the intent of the buyer has no impact on the use of property by
I would of course treat it that way, but as I read 280A, I see the same things I see when I read it with respect to the timeshare issue:
a) General rule Except as otherwise provided in this section, in the case of a taxpayer who is an individual or an S corporation, 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.
d) Use as residence
2) Personal use of unit For purposes of this section, the taxpayer shall be deemed to have used a dwelling unit for personal purposes for a day if, for any part of such day, the unit is used - (A) for personal purposes by the taxpayer or any other person who has an interest in such unit, or by any member of the family (as defined in section 267(c)(4)) of the taxpayer or such other person;BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.