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brief, and therefore has the burden of proof. We think
respondent's argument is not on point.
Petitioner testified that he used a portion of the basement,
measuring 272 square feet, to store files, law books, and estate
property. There is no suggestion that petitioner used this
portion for personal reasons. Thus, we find that this portion of
the basement satisfies the requirements of section 280A(c)(1) and
is part of petitioner's home office.
Finally, petitioners argue that petitioner's law office
includes the hallway on the first floor. Petitioners offered no
evidence to establish that this area was used exclusively for
business purposes. Therefore, petitioners are not entitled to
deduct expenses allocable to this portion of their residence.
Based on the above analysis, petitioners are entitled to an
additional home office deduction with respect to the expenses
attributable to 571 square feet.3
B. Telephone Expense
Section 262(a) provides: "Except as otherwise expressly
provided in this chapter, no deduction shall be allowed for
personal, living, or family expenses." Section 262(b) provides
that any charges, including taxes, for basic local telephone
service for the first telephone line of the taxpayer's residence
3 Computations under Rule 155 should account for respondent's
allowance of mortgage interest and real estate taxes as itemized
deductions.
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