- 8 - 3. General Petitioner claimed a deduction for general expenses of $1,949. Respondent disallowed $1,266 of this general expense. As with other items of expense deductions, petitioner’s testimony provided little guidance as to what was claimed under the “general” category. Although petitioner’s summary of his credit card spending for 1995 is helpful to substantiate amounts paid during that year, it provides no other helpful information. Petitioner is required to provide a business purpose for expenses claimed under section 162. Without a clear indication of what amounts constitute “general” expenses, we cannot allow a deduction in excess of respondent’s previously allowed amount. Respondent is sustained on this issue. 4. Business Use of Home Section 280A generally prohibits deduction of otherwise allowable expenses with respect to the use of an individual taxpayer’s home. This prohibition, however, does not apply to any item that is allocable to a portion of the home that is exclusively used on a regular basis as the principal place of business for the taxpayer’s trade or business or to space that is used on a regular basis for storage of the taxpayer’s inventory held for use in the taxpayer’s trade or business of selling products at retail or wholesale. Sec. 280A(c)(1) and (2). Petitioner claimed a Schedule C business use of home expensePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011