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Vacation Homes Revisited: Bolton Mistakenly Unbolts Door To Extra Deductions, Michael B. Lang

Michael B. Lang

The Tax Reform Act of 1976 added section 280A to. the Internal Revenue Code of 1954 in an effort to clarify and restrict the availability of deductions for expenses of home offices and vacation homes.' In explaining the need for the new provision in the vacation home area, the Senate Finance Committee stated: Where expenses attributable to a residence are treated as deductible business expenses, an opportunity exists to convert nondeductible personal, living and family expenses into deductible expenses. In the case of so-called vacation homes that are used both for personal purposes and for rental purposes, the committee believes …