Dennis E. Lofstrom reported $649 of income and $19,158 in expenses on his Angel’s Rest Arrowhead Ranch Fly-In Bed and Breakfast. The court granted a zero deduction for the expenses because1

Lofstrom allowed his daughter and her family to use the B&B. Tax law counts the daughter’s use as personal use by Lofstrom, and the amount of her personal use made the B&B a Lofstrom residence for tax purposes.

Lofstrom did not use the B&B exclusively for business.

Lofstrom had no records proving ... Log in to view full article.