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petitioners stipulated that the use of their home as an
office/storage was not for the convenience of Dr. Novick's employer
(thus, petitioners do not come within the exception under section
280A(c)(1)), and (2) the only items stored at petitioners' home
were medical equipment and files (thus, petitioners do not come
within the exception under section 280A(c)(2)).
With respect to the claimed depreciation on the automobile
that Mrs. Novick purportedly used to transport medical files,
charts, and x rays from petitioners' home to Dr. Novick's medical
office, we note that Mrs. Novick was not an employee of either Dr.
Novick or Sacramento Sierra Medical Group, nor was the use of the
car for that purpose required as a condition of her husband's
employment. Thus, even assuming arguendo the automobile was used
90 percent for such purposes, the depreciation would not be
deductible. See sec. 280F(d)(3). Moreover, even if Dr. Novick
used the automobile for such purposes, that use still would not be
3(...continued)
in connection with the taxpayer's trade or
business.
However, where the taxpayer is an employee, the exclusive use
requirement set forth above must be for the convenience of the
taxpayer's employer.
Sec. 280A(c)(2) permits a taxpayer to deduct an
otherwise allowable item of expense with respect to the use of a
taxpayer's personal residence "which is used on a regular basis
as a storage unit for the inventory of the taxpayer held for use
in the taxpayer's trade or business of selling products at retail
or wholesale, but only if * * * [the personal residence] is the
sole fixed location of such trade or business."
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