IRS vs Tax Court methods


E

Ed

I'm studying the topic of vacation home rentals. I would
like to find more information regarding the advantages and
disadvantages of the IRS method vs the tax court method
(Bolton decision) for prorating days of occupancy for the
purpose of calculating deductible expenses.

I have run several searches and have come up dry, even on
the IRS web site. The only info I get under "Bolton" is
about the guy who is now ambassador to the UN.

Even Pub 527 has no information on this.

Does anyone know where I can find info on this?

Thanks,
Ed

Thanks also to those of you who responded a few weeks ago to
my question regarding the 2005 limit for itemized
deductions.
 
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M

MTW

Ed said:
I have run several searches and have come up dry, even on
the IRS web site. The only info I get under "Bolton" is
about the guy who is now ambassador to the UN.
The IRS has never officially accepted the Bolton decision.
Therefore, you won't find anything about it in the IRS
literature.

(Parenthetically, this is a classic example of how you will cut
yourself short if you limit your research to IRS materials. You
will never hear about more favorable treatments that have been
allowed by the courts.)

I tried a quick Google search using "tax court bolton vacation
home" and got a number of hits. Try this and see if it leads you
in the right direction.

MTW
 
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E

Ed

OK, thanks. I'll try that. I had never tried that combination
of words.
 
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what are the longer term consequences or trade-offs if the tax court method is used? Short term is larger refund but des it impact sales cost basis later? This is a vacation home.
 

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