-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