Gerald L. and Joy M. Zeidler - Page 22

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          business establishment if the requirements of section 280A(c)(1)            
          are met.  Section 280A(c)(1), in turn, allows deductions                    
          allocable to the portion of a dwelling unit that is exclusively             
          used on a regular basis as the principal place of business for              
          any trade or business of the taxpayer.  As noted above,                     
          respondent at trial conceded petitioners' entitlement to a home             
          office deduction for the portion of their dwelling used in                  
          connection with their trade or business and rental properties.              
          With this concession, it follows that petitioners' computer is              
          excepted from the definition of "listed property" under section             
          280F(d)(4)(B); thus, the strict substantiation requirements of              
          section 274(d) are not applicable.  Petitioners substantiated               
          their purchase of the equipment, and the Court is satisfied that            
          the computer was used for business and investment purposes.                 
          Petitioners, therefore, are entitled to depreciation deductions             
          on their computer for the 2 years at issue.                                 
               The trade or business activity of petitioners previously               
          referred to was conducted by Mr. Zeidler under the trade name of            
          GLZ Financial Services.  He provided consulting and estate                  
          planning services and was also licensed to sell insurance.                  
          Petitioners reported their income and expenses from this activity           
          on Schedule C, Profit or Loss From Business, of their returns.              
          In the notices of deficiency, respondent disallowed several of              
          the expenses claimed by petitioners for each of the years in                

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