Tax Court Denies RV Business Deductions
Hello RV.net Friends, If you are taking business deductions for RV use, you should share this case with your CPA. Tax Court Case Dellward R. Jackson et ux. v. Commissioner; T.C. Memo. 2014-1...
Forum Discussion
The taxpayers’ problems – like many tax cases, the taxpayers caused a major part of their problems.
1. Depreciation – based upon $302,119 while they paid $248,456.96 and did not justify the higher number.
2. Business use in 2006 – claimed 100% without records. Admitted at trial that there was some personal use.
3. Business use in 2007 – claimed 99.95%. There were records, but the Tax Court determined that the actual business use was 66.7%.
If the IRS or Tax Court catches you making false statements (or even unsupported claims), you are in trouble. Their attorney claimed that Sec. 280A was not applicable, but when you are in the wrong the Tax Court may insist on a “letter of the law” interpretation.
If anyone has a good argument on the Sec. 280A issue, that would be helpful to RV.net readers.
1. Depreciation – based upon $302,119 while they paid $248,456.96 and did not justify the higher number.
2. Business use in 2006 – claimed 100% without records. Admitted at trial that there was some personal use.
3. Business use in 2007 – claimed 99.95%. There were records, but the Tax Court determined that the actual business use was 66.7%.
If the IRS or Tax Court catches you making false statements (or even unsupported claims), you are in trouble. Their attorney claimed that Sec. 280A was not applicable, but when you are in the wrong the Tax Court may insist on a “letter of the law” interpretation.
If anyone has a good argument on the Sec. 280A issue, that would be helpful to RV.net readers.
