26 C.F.R. § 1.274-7
Treatment of certain expenditures with respect to entertainment-type facilities
If deductions are disallowed under § 1.274-2 with respect to any portion of a facility, such portion shall be treated as an asset which is used for personal, living, and family purposes (and not as an asset used in a trade or business). Thus, the basis of such a facility will be adjusted for purposes of computing depreciation deductions and determining gain or loss on the sale of such facility in the same manner as other property (for example, a residence) which is regarded as used partly for business and partly for personal purposes.
Notes of Decisions
Cited in 1
case, 1986–1986 · leading case: Wott v. Comm'r, 51 T.C.M. 1577 (Tax Ct. 1986).
Wott v. Comm'r, 51 T.C.M. 1577 (Tax Ct. 1986). “*318 In his statutory notice of deficiency herein, respondent allowed a portion of the claimed yacht expenses and depreciation, 12 apparently based upon his allocation between business and nonbusiness use.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.