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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 purposes
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