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activities was his home; consequently, the disallowed mileage
constituted business mileage.3
The first issue is whether petitioner is entitled to a home
office deduction of $532 for 1994. Petitioner contends his
apartment was his principal place of business. Respondent
disputed this assertion.
Under section 162(a), a taxpayer is permitted to deduct all
ordinary and necessary expenses paid or incurred in carrying on a
trade or business. Under section 280A(c)(1)(A), however,
deductions associated with a home office are generally disallowed
unless the home office was used exclusively and regularly as the
principal place of business of the taxpayer. Respondent does not
dispute that petitioner used a portion of his apartment
exclusively and regularly in his business activities but denies
3The Court notes that the standard mileage rates used by
respondent in allowing petitioner's business mileage were 28
cents and 29 cents per mile, respectively, for 1993 and 1994.
Petitioner did not challenge the mileage rate used by respondent.
The 49,302 business miles claimed by petitioner on his 1993
return, at 28 cents per mile, would amount to $13,804.56; yet,
the amount petitioner claimed on his return was $13,990. For
1994, the 57,355 business miles claimed by petitioner on that
return, at 29 cents per mile, would amount to $16,632.95; yet,
the amount claimed by petitioner on his return was $16,828. It
appears to the Court that, since petitioner has not questioned
the allowable mileage rate for each year, either he miscalculated
the amount on his returns or included in his car and truck
expenses other items that were not disclosed or addressed at
trial. These discrepancies were not raised as an issue by
petitioner.
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