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(B) as a place of business which is used by
patients, clients, or customers in meeting or
dealing with the taxpayer in the normal course of
his trade or business, * * *
Sec. 280A(c). While determination of a taxpayer's principal
place of business for purposes of section 280A depends upon the
particular facts of the case, two primary factors for
consideration are: (1) "the relative importance of the
activities performed at each business location"; and (2) the time
spent at each location. Commissioner v. Soliman, 506 U.S. 168,
175 (1993).
Mrs. Tesar's business was providing physical therapy to
patients. Mrs. Tesar performed the majority, if not all, of such
services at her patients' homes or other location outside of her
home. These activities were of greater significance than the
administrative functions, such as transcribing notes and updating
files, that she performed at home. This factor tends to show
that Mrs. Tesar's home office was not her principal place of
business.
Petitioner testified that Mrs. Tesar spent approximately an
equivalent amount of time performing services outside the home as
she spent completing work at home. Petitioner generally was not
present while Mrs. Tesar worked at home, and he did not have
actual knowledge concerning this matter. Moreover, even if we
accept that Mrs. Tesar worked half of the time at home and half
of the time at other locations, the time factor would not
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