- 6 - of a trade or business, the expenditures are nondeductible personal expenses. Home Office Expense Petitioner used the Bridgeford property as the principal place of business for his meat and seafood sales. Respondent thus allowed petitioner to deduct 40 percent of the rent expense on the Bridgeford property. Petitioner argues that 100 percent of the rental expense should be allowed as a deduction. Section 280A establishes the general rule that no deduction is allowed with respect to business use of a taxpayer's personal residence. Section 280A(c)(1)(A), however, provides that section 280A shall not apply if a portion of the taxpayer's personal residence is exclusively used on a regular basis as the principal place of business for any trade or business of the taxpayer. See Sam Goldberger, Inc. v. Commissioner, 88 T.C. 1532, 1556-1557 (1987). The evidence presented by petitioner, consisting of photographs of the Bridgeford property along with petitioner's testimony, fails to establish that petitioner used more than 40 percent of the Bridgeford property exclusively for business purposes. The legislative history of section 280A dealing with exclusive use explains: Exclusive use of a portion of a taxpayer's dwelling unit means that the taxpayer must use a specific part of a dwelling unit solely for the purpose of carrying on his trade or business. The use of a portion of a dwelling unit for both personal purposesPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011