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Commissioner, 707 F.2d 404, 407 (9th Cir. 1983)). Accordingly,
under present law, use of a home office that fails to qualify
under section 280A is to be treated as personal in nature for
purposes of deducting any related expenses. Id. at 357. Thus,
since petitioner failed to prove that any portion of his
residence was used exclusively for business, and failed to prove
what portion, if any, of the costs of the telephone, chairs, desk
lamp, and computer stand was connected to his business, he is
precluded from deducting such costs. Sec. 262.
Finally, under section 280A(a), utilities are considered an
expense incurred with respect to the use of a dwelling unit.
Accordingly, petitioner is barred from deducting one-third of the
cost of utilities allocable to his home office, because he failed
to establish that the office was exclusively used on a regular
basis for one of the three purposes under section 280A(c)(1), or
that one-third would be the appropriate allocation.
E. Office Expenses and Supplies
For 1991 and 1992, petitioner deducted $1,535 and $1,734 in
supplies and office expenses for the cost of business checking
fees, film and developing, photocopies, blank videos, and
miscellaneous supplies. Respondent disallowed all of the
expenses except for $118 claimed in 1991, representing the cost
of typewriter services, stationery, legal pads, fax paper, and
typing pads.
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