Quimbee logo
DMCA.com Protection Status

Bolton v. Commissioner

694 F.2d 556 (1982)

Case BriefQ&ARelatedOptions
From our private database of 22,300+ case briefs...

Bolton v. Commissioner

United States Court of Appeals for the Ninth Circuit

694 F.2d 556 (1982)

Facts

Dorance and Helen Bolton (plaintiffs) owned a vacation home. In 1976 the Boltons used their vacation home for 30 days, rented it for 91 days, and left it empty for 244 days. Section 280A of the Internal Revenue Code allowed taxpayers to deduct nonbusiness expenses for the use of a personal residence. To comply with the statute, taxpayers had to allocate allowable deductions between rental and personal use. Section 280A(e) required taxpayers to calculate the share of maintenance expenses that were related to renting the property according to the following ratio: the number of days the property is rented divided by the total number of days the property is used, which for the Boltons would be 91 over 121. Section 280A(c)(5) limited the total deductions for renting the property to the gross rental income that the taxpayers earned that year and gave required allocations of nonmaintenance-expense deductions for the property between rental and nonrental use. The Boltons allocated their deductions by using a ratio of the number of days they rented their property divided by the number of days in the year, or 91 over 365. The Commissioner of Internal Revenue (the Commissioner) (defendant) disagreed with the Boltons’ method of allocation. The Commissioner asserted that the correct ratio was the one from § 280A(e), in this case 91 over 121. The United States Tax Court reversed the Commissioner, finding that the Boltons had correctly allocated their expenses. The tax court reasoned that expenses like property tax and interest on mortgage loans accrue daily, not just when the property is being actively used. The tax court further determined that the statutory language of 280A(e)—which notes that it does not apply to other, nonmaintenance expenses—and legislative intent to allow taxpayers to allocate personal and business uses of rental property supported its reading of the statute over the Commissioner’s interpretation. The Commissioner appealed.

Rule of Law

Issue

Holding and Reasoning (Copple, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 518,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 518,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 22,300 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions and answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Access this case brief for FREE

With a 7-day free trial membership
Here's why 518,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 22,300 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership