Tax Research Project 2
Introduction:
In 1976, Congress amended the tax law to include Section 280A (Lawyer, 1985) in the Internal Revenue Code. Congress’ reason for the amendment was due to concerns that people were renting out their vacation homes so that they could deduct personal expenses that would not, under normal circumstances, be deductible (Lawyer, 1985). Section 280A required vacation home owners to assign expenses connected with the vacation home either to personal use or rental use. Congress apparently hoped that Section 280A would limit or control the business deductibles for expenses sustained on a vacation home during the tax year when ...