Valerie Jean Genck - Page 6

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          Home Office Expenses - Rent and Utilities                                   
               Petitioner claimed deductions for rent and utilities paid              
          with respect to her home office in the amounts of $1,200 and                
          $1,289, respectively.                                                       
               Section 280A(a) provides that in the case of a taxpayer who            
          is an individual, no deduction otherwise allowable under                    
          chapter 1 of the Code (relating to normal taxes and surtaxes)               
          shall be allowed with respect to the use of a dwelling unit which           
          is used by the taxpayer during the taxable year as a residence.             
               The term "dwelling unit" includes a house, apartment,                  
          condominium, or similar property, and all structures or other               
          property appurtenant to such dwelling unit.  Sec. 280A(f)(1)(A).            
               Section 280A(c) provides for exceptions to section 280A(a).            
          In pertinent part, section 280A(c)(1)(A) states that section                
          280A(a) shall not apply to any item to the extent that such item            
          is allocable to a portion of the dwelling unit which is                     
          exclusively used on a regular basis as the principal place of               
          business for any trade or business of the taxpayer.  We are                 
          convinced from the record that 50 percent of petitioner's                   
          apartment was exclusively used on a regular business for her band           
          management activities.  We must also, however, address the                  
          question of whether the home office constitutes her principal               
          place of business.                                                          
               The Supreme Court in Commissioner v. Soliman, 506 U.S. 168             
          (1993), postulated two primary considerations to decide whether             




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