- 3 -3
Supplies 68
Utilities 146
Other-telephone 45
Other-books/pub 75
Other-dues 55
$8,166
Respondent disallowed the $6,740 claimed as a rent expense
deduction by petitioner pursuant to section 280A(c)(5).
During 1992, petitioner leased the upper and lower stories
of one half of a building located at 2743 Tenth Street, Berkeley,
California, for $1,050 per month, or $12,600 per year. For our
purposes, we shall ignore the other half of the two-story
building and refer to petitioner's premises as "Tenth Street" or
"premises". The lease was entitled "Commercial Lease and Deposit
Receipt". The lease specifically stated that the premises were
to be used for "painting and residence."
The Tenth Street building was located in a manufacturing
district and was in a commercially zoned area. There was one
address for the premises and one lease for the premises. The
rent and utilities were charged and paid as a unit for the
premises.
Petitioner and her son resided in the upper level of the
premises. She used the lower level for her art/fine art
business.
Petitioner contends that she leased the Tenth Street
premises for the primary purpose of her art/fine art business.
She further argues that section 280A does not apply to her
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Last modified: May 25, 2011