John A. and Margaret R. Gosling - Page 5

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               A smaller portion of petitioner's time was spent at the                 
          Hilton Head concert hall rehearsing performances and conducting              
          concerts.  Petitioner traveled about 120 miles (round trip) to               
          perform these duties at the Hilton Head concert hall.                        
               On petitioners' returns for 1993 and 1994, petitioners                  
          claimed home office expense deductions in the amounts of $1,094              
          and $1,106, respectively.3  Petitioners also claimed car and                 
          truck expense deductions in the amounts of $6,720 for 1993 and               
          $6,000 for 1994.4                                                            
               Section 162(a) allows a deduction for the ordinary and                  
          necessary expenses paid or incurred during the taxable year in               
          carrying on a trade or business.                                             
               Section 280A(a) provides that in the case of a taxpayer who             
          is an individual, no deduction otherwise allowable under chapter             
          1 of the Internal Revenue 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.  Section 280A(c) provides for exceptions to the                   
          general rule of section 280A(a).  As pertinent herein, section               

          3  Respondent concedes that there is no issue as to                          
          substantiation and does not contend that the ratio of expenses               
          allocated to the home office exceeds the proper allocation.                  
          4  Similarly, respondent concedes that these expenses have                   
          been substantiated.                                                          

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