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art/fine art business conducted in one portion of the Tenth
Street premises.
Deductions are a matter of legislative grace. A taxpayer
seeking a deduction must be able to show that the taxpayer comes
within the express provisions of the statute. New Colonial Ice
Co. v. Helvering, 292 U.S. 435, 440 (1934). Petitioner bears the
burden of proving that respondent's determination is incorrect.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 162(a) generally allows a deduction for all ordinary
and necessary expenses paid or incurred during the taxable year
in carrying on any trade or business.
Section 280A(a) provides that in the case of a taxpayer who
is an individual, no deduction otherwise allowable under
Chapter 1 of the Code (relating to normal taxes and surtaxes)
shall be allowed with respect to the use of a dwelling unit which
is used by the taxpayer during the taxable year as a residence.
The term "dwelling unit" includes a house, apartment,
condominium, or similar property, and all structures or other
property appurtenant to such dwelling unit. Sec. 280A(f)(1)(A).
Section 280A(c) provides for exceptions to section 280A(a).
In pertinent part, section 280A(c)(1)(A) states that section
280A(a) shall not apply to any item to the extent such item is
allocable to a portion of the dwelling unit which is exclusively
used on a regular basis as the principal place of business for
any trade or business of the taxpayer.
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Last modified: May 25, 2011