PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1571
sonal purposes for a day if, for any part of such day, the u n i t is used— " (A) for personal purposes by the tax p a y e r or any other person who has an interest in such unit, or by any member of the family (as defined in section 267(c)(4)) of the tax- 26 USC 267. payer or such other person; " (B) by any individual who uses the unit under a n a r r a n g e m e n t which enables the tax p a y e r to use some other dwelling u n i t (whether or not a rental is charged for the use of such other u n i t); or " (C) by any individual (other than an employee with respect to whose use section 119 applies), unless for such day the dwelling unit is rented for a rental which, under the facts and circumstances, is fair rental. The Secretary shall prescribe regulations with respect to the cir- Regulations, cumstances under which use of the unit for repairs and annual maintenance will not constitute personal use under this paragraph. "(e)
E X P E N S E S ATTRIBUTABLE TO R E N T A L. —
" (1) IN GENERAL.—In any case where a taxpayer who is an individual or an electing small business corporation uses a dw^elli n g unit for personal purposes on any d a y during the taxable year (whether or not he is treated under this section as using such u n i t as a residence), the amount deductible under this chapter with respect to expenses attributable to the rental of the unit (or portion thereof) for the taxable year shall not exceed an amount which bears the same relationship to such expenses as the number of days during each year that the unit (or portion thereof) is rented a t a fair rental bears to the total number of days during such year that the unit (or portion thereof) is used. "(2)
EXCEPTION FOR DEDUCTIONS OTHERWISE ALLOWABLE.—This
subsection shall not apply with respect to deductions which would be allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was rented. "(f)
DEFINITIONS AND SPECIAL RULES. —
" (1) DWELLING UNIT DEFINED.—For purposes of this section— " (A) IN GENERAL.—The term 'dwelling unit' includes a house, apartment, condominium, mobile home, boat, or simil a r property, and all structures or other property appurtenant to such dwelling unit. " (B) EXCEPTION.—The term 'dwelling unit' does not include that portion of a unit which is used exclusively as a hotel, motel, inn, or similar establishment. " (2)
PERSONAL USE BY ELECTING SMALL BUSINESS CORPORATION.—
I n the case of an electing small business corporation, subparagraph s (A) and (B) of subsection (d)(2) shall be applied by substituting 'any shareholder of the electing small business corporation' for 'the tax p a y e r ' each place it appears. "(3)
COORDINATION
WITH
SECTION
IS3.—If
subsection
(a)
applies with respect to any dwelling unit (or portion thereof) for the taxable year— " (A) section 183 (relating to activities not engaged in for profit) shall not a p p l y to such unit (or portion thereof) for such year, but " (B) such year shall be taken into account as a taxable year for purposes of a p p l y i n g subsection (d) of section 183 (relating to 5-year p r e s u m p t i o n).
- ,is
�
