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In light of our conclusion that the expenses are those of
CCSI and not petitioner, we do not consider the issue of
substantiation.
However, we now consider whether petitioner, as an employee
of CCSI, is entitled to deduct home office expenses on Schedule A
as unreimbursed employee expenses. Section 280A(a), in general,
provides that no deduction is allowed with respect to the
business use of a taxpayer’s personal residence. Section 280A(c)
contains some limited and explicit exceptions to this rule.6
For a deduction to be allowed under section 280A(c)(1), a
taxpayer who is an employee must establish that a portion of his
dwelling unit is: (1) Exclusively used, (2) on a regular basis,
(3) for the purpose enumerated in section 280A(c)(1)(A), and (4)
that the taxpayer maintained the office for the convenience of
his employer. Moreover, deductions allowed under section
6 SEC. 280A(c). Exceptions for Certain Business or Rental
Use; Limitation on Deductions for Such Use.--
(1) Certain business use.-- Subsection (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--
(A) [as] the principal place of business for any
trade or business of the taxpayer,
* * * * * * *
In the case of an employee, the preceding sentence shall
apply only if the exclusive use referred to in the preceding
sentence is for the convenience of his employer.
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Last modified: May 25, 2011