NO RENT WRITE-OFF

September 16, 2008
Michael Sheehan

Physician's Money Digest, July15 2003, Volume 10, Issue 13

When Dr. Michael Chin, a surgeon,wrote off rental payments onan office suite owned by his mother,the IRS denied the deductions, tookhim to court, and won. After presidingover the complex case, a US TaxCourt judge essentially ruled that Dr.Chin, who claimed write-offs totaling$100,000 on his Schedule Cform as rental expenses for 1994 and1997, was actually shifting income tohis mother, who was in a lower taxbracket. The judge also ruled thatDr. Chin failed to show that he everactually conducted his medical practiceat his mother's property duringthe 2 years in question.