- 3 - petitioner's law practice was conducted out of petitioners' personal residence at Salt Lake City, Utah. For the remaining 7 months of 1992, petitioner conducted his law practice at a downtown Salt Lake City office. The expenses at issue involve the home office expenses incurred by petitioner for the periods noted in 1991 and 1992, which petitioners deducted as trade or business expenses on their 1991 and 1992 Federal income tax returns. Respondent has not questioned the substantiation of these expenses. Respondent, however, has questioned the percentage amount petitioners claim constituted the portion of their home that was used for petitioner's law practice. Petitioners' home consisted of an upstairs and a downstairs, totaling 3,200 square feet. During 1991, petitioners and four children lived in the home. During 1992, petitioners and three children lived in the home. Petitioners contend that 75 percent of the total floor space of their home was used for the law practice; however, this space was used only two-thirds of the time for the law practice. For the remainder of the time, when the space was not used for law practice, the space was available and was in fact used by petitioners and their children as their residence for personal purposes. On their income tax returns, consistent with the recited percentages, petitioners claimed 50 percent of their home expenses as deductible home office expensesPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011