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Schedule E rental expenses in excess of those allowed by
respondent.
Miscellaneous Employee Business Expenses
Petitioners introduced no documentation to substantiate any of
the disallowed miscellaneous employee business expenses for any of
the years under consideration. Nor was there any meaningful
testimony to support petitioners' entitlement to the claimed
employee business expenses.
With respect to the claimed office and storage expenses (which
relate to Dr. Novick's use of petitioners' residence to store
medical records of inactive patients and certain medical
equipment), petitioners failed to come within any of the exceptions
provided by section 280A(c) to the general rule denying a deduction
for home office expenses.3 We specifically note that (1)
3 Sec. 280A provides generally that no deduction is
allowable with respect to the use of a dwelling unit which is
used by the taxpayer during the taxable year as a residence.
Sec. 280A(c) provides exceptions to this general rule.
Pursuant to sec. 280A(c)(1), a taxpayer may deduct an
otherwise allowable item of expense allocable to the portion of a
taxpayer's personal residence which is used exclusively on a
regular basis:
(A) [as] the principal place of business for
any trade or business of the taxpayer,
(B) as a place of business which is used by
patients, clients, or customers in meeting
with the taxpayer in the normal course of
* * * [the taxpayer's] trade or business, or
(C) in the case of a separate structure
which is not attached to the dwelling unit,
(continued...)
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