IRS Code Section 280A provides guidance on what expenses are allowed on rental property and how to allocate those expenses.
- Use the tax research methodology to research the regulations regarding rental income and expenses.
- Describe your research findings.
- Do you believe the allocations outlined in Code Section 280A are appropriate? Why or why not?
- For taxpayers who own rental property, this could be a potential area used to reduce their taxable income. What are the ethical and legal ramifications of misusing the treatment of rental property expenses?
Support your answers with rationale and/or evidence.