-19-
280A(a). Petitioner lived in her residence in 1990 and 1991.
Thus, the restrictions of section 280A apply to the addition,
including the conservatory, because it was part of petitioner's
residence.
Petitioner's reliance on Burkhart v. Commissioner, T.C.
Memo. 1989-417, for the proposition that section 280A was
intended to disallow expenses only where a taxpayer performs
some, as opposed to all, of his or her business in the taxpayer's
residence is misplaced. In Burkhart, the taxpayer operated a
photographic studio in the basement of his residence. We held
that section 280A applied to the studio because it was part of
the taxpayer's residence. We did not consider whether section
280A does not apply if a taxpayer uses his or her entire
residence for business.
2. Section 280A(c)(5) Limitation
A taxpayer's deductions for the business use of a residence
are limited to the amount that the gross income from business use
of the residence exceeds the amount of deductions allocable to
such use which are allowable regardless of whether the residence
was used for business (such as mortgage interest and property
taxes) plus deductions for expenses of the business which are not
allocable to the business use of the residence. See sec.
280A(c)(5).
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