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and for the carrying on of a trade or business does not
meet the exclusive use test. Thus, for example, a
taxpayer who uses a den in his dwelling unit to write
legal briefs, prepare tax returns, or engage in similar
activities as well as for personal purposes, will be
denied a deduction for the expenses paid or incurred in
connection with the use of the residence which are
allocable to these activities. * * * [S. Rept. 94-
938, at 148 (1976), 1976-3 C.B. (Vol. 3) 186; H. Rept.
94-658, at 161 (1975), 1976-3 C.B. (Vol. 2) 853.]
The majority of the photographs of the Bridgeford property
introduced by petitioner depict the exterior of the house. The
interior photographs show the garage (where petitioner kept his
inventory in freezers), a hallway with an office chair, and two
rooms containing office furniture. At least one bedroom, the
family room/dining room, and the kitchen are not shown in these
photographs. Petitioner's testimony at trial indicated that he
used the kitchen to cook his meals, and it appears that he stayed
overnight at the Bridgeford property.
This evidence is not sufficient to show that 100 percent of
the rental expense of the Bridgeford property is deductible.
Certain areas of the house were not used exclusively for business
purposes. Still, other areas have not been shown to have been
used for business purposes at all. Therefore, respondent's
determination that petitioner cannot deduct the remaining
60 percent of the rental expense of the Bridgeford property will
be sustained.
Education Expense
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