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insurance were integrated with the costs of maintaining
the rest of the building. The basement became part and
parcel--a "portion," in the language of section
280A(c)(1) and (5)--of petitioners' dwelling unit.
* * * [Burkhart v. Commissioner, supra.]
In the instant case, the basement and street levels were
certainly physical parts of the building, and, even if we only
take into account the necessary usage of the stairway, those
levels were functional parts as well. Accordingly, consistent
with our reasoning in the Burkhart case, we find that the entire
building constitutes petitioner's dwelling unit as that term is
used in section 280A.
Because we find that the entire building constitutes the
petitioner's dwelling unit, we need not address the question of
whether the basement and street levels were appurtenant to the
upper level.
Because the areas used as an art gallery were part of
petitioner's dwelling unit, the deductions attributable to the
business use of the building are subject to the limitations set
forth in section 280A(c)(5). Accordingly, respondent's
determination in this regard is sustained.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011