- 7 - petitioners' house, was used as their residence during 1992. The provisions of section 280A(a) do not apply to expenses attributable to any portion of the dwelling unit used exclusively on a regular basis as the principal place of the taxpayer's trade or business. Sec. 280A(c)(1)(A). Respondent agrees that the exclusive use requirement set forth in section 280A has been satisfied. However, based upon the Supreme Court's holding in Commissioner v. Soliman, 506 U.S. 168 (1993), respondent takes the position that petitioner's home office does not constitute his principal place of business within the meaning of section 280A(c)(1)(A). Therefore, according to respondent, section 280A(a) precludes petitioners from deducting the expenses incurred in connection with petitioner's home office.3 In Soliman, the taxpayer, also an anesthesiologist, administered anesthesia and treated patients at several hospitals. Much like petitioner, Dr. Soliman used his home office for billing, recordkeeping, and other purposes related to his medical practice. Dr. Soliman did not treat any patients at 3Petitioners do argue for the application of sec. 280A(c)(1)(B), which allows expenses attributable to any portion of a dwelling unit exclusively used on a regular basis by patients, clients, or customers in meeting or dealing with the taxpayer in the normal course of the taxpayer's trade or business. We are satisfied that sec. 280A(c)(1)(B) has no application in this case. Contacts by telephone between petitioner and his patients do not satisfy the provisions of that section, see Frankel v. Commissioner, 82 T.C. 318 (1984), and the rare visits by petitioner's patients do not constitute usage of the home office for such purposes on a regular basis.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011