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entertained. Petitioner testified that she kept a calendar for
these events, and the calendar was destroyed by water damage. On
the basis of this record, we conclude that petitioner is entitled
to a deduction in the amount of $262 for meal and entertainment
expenses.
10. Utilities (Home Office)
Petitioner deducted utility expenses in the amount of
$1,742.80. Section 280A, in general, disallows deductions with
respect to the use of a dwelling unit that is used by the
taxpayer during the taxable year as a residence. However,
section 280A(c) permits the deduction of expenses 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". Thus, to qualify under section
280A(c) for a home-office deduction, petitioner must establish
that a portion of her dwelling is (1) exclusively used, (2) on a
regular basis, and (3) as the principal place of business for her
trade or business. Hamacher v. Commissioner, 94 T.C. 348, 353
(1990). However, section 280A(c)(5) limits the amount of
deductions to the excess of the gross income derived from the use
of the home office over the deductions allocable to the home
office that are otherwise allowable.
The determination of the principal place of business depends
on the particular facts of each case. Commissioner v. Soliman,
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