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Court constituted their principal place of business for purposes
of section 280A(c). Petitioners have presented no evidence
regarding this issue. Accordingly, we sustain respondent's
determination.
Deductions for Utilities and Depreciation for 1988, 1989,
and 1990
For the taxable years 1988, 1989, and 1990 petitioners
claimed deductions for utilities and depreciation for their
downtown office and for the portion of their residence that they
used as an office. Respondent disallowed the portion of these
deductions attributable to petitioners' home office.
Petitioners may deduct utilities and depreciation
attributable to their home office only if their home office was
their principal place of business within the meaning of section
280A(c)(1)(A). This matter depends on the specific facts and
circumstances of each particular case.
Petitioner used the home office for preparing for counseling
sessions. Petitioner did not meet with or counsel clients at the
home office and, instead, used the downtown office for that
purpose. Petitioner testified that he maintained his counseling
books and accounting materials at the home office because the
presence of these items in the downtown office would have
intimidated the clients.
In deciding whether petitioners are entitled to deductions
for utilities and depreciation in excess of those allowed by
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