Code section · 1976
IRC §280A
26 U.S.C. §280A
Internal Revenue Code
What it holds
Limits deductions for a dwelling the owner also uses personally. Personal use over the greater of 14 days or 10% of the fair-rental days makes it a residence. Expenses, including depreciation, are allocated by rental days to total use days. A dwelling rented fewer than 15 days excludes the rent and allows no rental deduction.
Why it matters for your study: Limits deductions, including depreciation, when an owner also uses a rental personally. It is why a study asks for personal-use days on a short-term rental: too many make the property a residence and cap its losses at its rental income.
- Category
- Passive loss & participation
- Applies to
- All property types
- Status
- Vetted
This page explains a tax authority in plain words. It is not tax advice for your situation. Joel Salas, our Director of Tax, signs every study. Citation is provided so you or your advisor can read the primary source.