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Petitioner testified that his small television was located in his
bedroom, and he and his wife ate their meals in the kitchen or
bedroom. Petitioner asserts that he conducted his business on a
“sporadic basis”. He stated at trial that “on a weekly basis,
Your Honor, I may have spent three or four hours” on the
business.
The record is clear that petitioner did not exclusively use
part of his residence to conduct his trade or business. It
defies logic that petitioner segregated over half of his one-
bedroom apartment for a business he now characterizes as a
sporadic frolic. Therefore, petitioner is not entitled to deduct
expenses of $13,642 relating to the use of his personal
residence, and we sustain respondent’s determination.4
6. Office Expenses and Depreciation
Petitioner deducted $5,150 for office expenses. The office
expenses included amounts for two computers, a laser printer, a
dot matrix printer, and two facsimile machines. We shall first
discuss whether petitioner may deduct the cost of the two
computers and two printers.
4 Even if petitioner satisfied the requirements of sec.
280A(c)(1), petitioner would not be entitled to the deduction, as
the deduction is limited by the gross income arising from the use
of the dwelling in the trade or business. See sec. 280A(c)(5).
Petitioner did not derive any income from his business before the
incorporation of Export.
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