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taxpayer's trade or business of selling products at retail or
wholesale. Sec. 280A(c)(2).
There is no dispute that petitioner's principal place of
business was located in petitioners' home. The issue is with
respect to what portion of petitioners' home are petitioners
entitled to claim a deduction for home office expenses. The
parties have presented their arguments on a room-by-room basis,
and we use this framework in our analysis. Petitioners argue
that they are entitled to a deduction for home office expenses
allocable to 51 percent business use of their home.
By way of background, we note that petitioner contends that
his family did no entertaining at home and that his wife and
children made no use of any of the rooms in the house aside from
the bedrooms, bathroom, and kitchen, and the dining room on a
extremely limited number of occasions. Furthermore, with respect
to the use of several rooms at issue, specifically the dining
room, kitchen, and bathroom, petitioners advance the argument
that "exclusive" business use during business hours is sufficient
to satisfy section 280A(c), regardless of any personal use after
hours. We do not agree. The use of a portion of a home for both
personal and business purposes does not meet the exclusive use
requirement of section 280A(c). Sam Goldberger, Inc. v.
Commissioner, supra.
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