Michael T. Chappell - Page 19




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          expenses if the taxpayer exclusively and regularly uses the home            
          office as the principal place of a trade or business or to meet             
          with clients.                                                               
               Petitioner contends that he may deduct his rent and utility            
          expenses for home offices in the Lower Wetumpka Road and Creek              
          Drive houses.  He contends that he showed that he met the                   
          requirements of section 280(c) for the Lower Wetumpka Road house            
          by his testimony and his receipts for mortgage and utility                  
          payments.  He testified that he had a large office in the Lower             
          Wetumpka road house that he used as a tax office and which the              
          Freedom Quilting Bee used. He also had a second office in that              
          home that he uses during tax season for tax preparation, and as a           
          map room for the lobbying activity when it is not tax season;               

               5(...continued)                                                        
                    item is allocable to a portion of the dwelling                    
                    unit which is exclusively used on a regular                       
                    basis--                                                           
                              (A) [as] the principal place of business                
                         for any trade or business of the taxpayer,                   
                              (B) as a place of business which is used                
                         by patients, clients, or customers in meeting                
                         or dealing with the taxpayer in the normal                   
                         course of his trade or business, or                          
                              *   *   *   *   *   *   *                               
               In the case of an employee, the preceding sentence                     
               shall apply only if the exclusive use referred to in                   
               the preceding sentence is for the convenience of his                   
               employer.                                                              







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Last modified: May 25, 2011