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What is the IRS method of allocating expenses between use and personal use

What is the IRS method of allocating expenses between use and personal use

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The IRS method is generally more beneficial than the tax court method when the property is considered to be a non residence with a rental use. when the property is not a residence, the interest allocated to personal use is not deductible. Thus, under these circumstances the taxpayer is better off by alloacating as little interest as possible to personal use. The IRS method accomplishes this by allocating interest to rental use by dividing the total rental days by the total days used and allocating the remainder to personal use.

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