Question
USE ONLY IRC 280A Disallowance of certain expenses in connection with business use of home, rental...
USE ONLY IRC 280A Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.
Scenario 1: Michael’s home has two acres with a detached barn. In the barn, Michael fixes cars
he works on for other people. His clients stop by the barn to show him the damage before he
accepts and completes the jobs. During the year, he incurred a number of expenses to operate the
car repair business out of his barn. He did not perform the work for this business at any other
location and does not use the barn for any other purpose except for the car repair business.
A. Can Michael deduct some portion of his barn’s expenses related to his car repair business
this year?
B. Explain in one or two sentences only why you gave the answer to part A using the
research resource you found. Make sure to cite the area of the resource you used.
Answers
No, Michael can't deduct any deduction regarding barn's expenses related to his car repair business because barn is used for livestock business where Michael used barn for his personal purpose (According to IRC 280A).
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