Gregory A. Maslow and Marina Maslow - Page 8

          Type of Expense          Amount Claimed      Amount Disallowed              
          A.   Home-office         $8,013                   $6,813                    
          B.   Travel              9,923                    7,220                     
          C.   Insurance                1,983               1,983                     
          D.   Phone                    5,709               5,709                     
          E.   Commissions              5,184               2,006                     
               A.  Home-Office Expenses                                               
               The portion of the claimed home-office expenses disallowed by          
          respondent ($6,813) represents 6 months of home mortgage payments.          
          (Petitioner claimed he used 50 percent of his residence for                 
          business purposes.)  Both the home and the mortgage were in the             
          name of petitioner's father-in-law, Mr. Shumatsky.                          
               In general, section 280A denies a deduction with respect to a          
          home office used by persons such as petitioner unless the home              
          office is exclusively used on a regular basis either (1) as the             
          principal place of business for any trade or business of such a             
          person, (2) as a place of business which is used by patients,               
          clients, or customers in meeting or dealing with the person in the          
          normal course of the person's trade or business, or (3) in the case         
          of a separate structure that is not attached to the home, in                
          connection with the person's trade or business.                             
               Petitioner failed to prove that the portion of his home                
          claimed as an office expense was exclusively used on a regular              
          basis either as the principal place of his insurance or export              
          business or as a place of business used to meet customers or                
          clients.  See sec. 280A.  Indeed, the record shows that petitioner          
          did not meet his customers at his home but rather conducted his             

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Last modified: May 25, 2011