-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 hisPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011