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280A(c)(1) may not exceed the excess of the gross income derived
from such use over the deductions allocable to such use which are
allowable regardless of the usage (such as property taxes). See
sec. 280A(c)(5).
There is no evidence in the record that petitioner
maintained a home office for the convenience of CCSI. Petitioner
was not prepared to testify or present documents substantiating
the home office deduction. The few documents that were
stipulated were provided without meaningful testimony. Moreover,
there was no gross income from petitioner’s business as an
employee of CCSI in 1993 or 1994. Therefore, petitioner has not
overcome the prohibition of section 280A(c)(5), and he is not
entitled to deduct home office expenses on Schedule A.
However, we do note that in 1993 petitioner allocated a
portion of his real estate taxes deductible on Schedule A to the
home office computation on Form 8829 for deduction on Schedule
C.7 Of a total amount of $2,285.78, $155.43 was allocated to the
home office deduction, and the remaining $2,130.34 was claimed on
Schedule A. Based on our holding that petitioner is not entitled
to deduct Schedule C expenses, the $155.43 that petitioner
7 Petitioner claimed 100 percent of his mortgage interest
expense in 1993 and 1994 and 100 percent of his real estate taxes
in 1994 as itemized deductions on his Schedules A. In addition,
however, petitioner claimed an alleged business portion of these
items on the Schedules C.
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