A recent Tax Court decision was reported dealing with Improvement to Rental Home. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients
Couple Can’t Deduct Cost of Improvements to Home Allegedly Rented to Relatives: In Perry v. Comm’r, T.C. Memo. 2018-90, the Tax Court held that a couple did not establish that they rented their second home to relatives and that, even if the court were to find that the couple did in fact rent the house to their relatives, the couple failed to carry their burden of establishing improvements to rental that they rented such home at fair rental value. Thus, the court denied the couple’s deduction for improvements made to that home.