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deduction in the amount of $4,130. Petitioner deducted this
amount as a home office expense for the year at issue based on
the use of 50 percent of his apartment and use of his basement
storage closet, which he used as an office and storage space,
respectively.
Respondent conceded that the smaller bedroom was used
exclusively as petitioner’s principal place of business. This
concession resulted in the allowance of a home office deduction
of $826, based on petitioner’s business usage of 10 percent of
his apartment.2 However, petitioner contends that 50 percent of
his apartment, including the storage area, was used solely for
his business. We disagree.
Although there is evidence that petitioner performed some
office activities in other rooms of his apartment, i.e., his
living room and dining room, petitioner did not use those rooms
exclusively for his business. See Popov v. Commissioner, 246
F.3d 1190 (9th Cir. 2001), affg. in part and revg. in part T.C.
Memo. 1998-374.
In addition, the storage space used by petitioner and
claimed as a home office expense for 1995 was not used for the
storage of items used as inventory, and petitioner is not
entitled to a deduction for the use of this space pursuant to
2 Petitioner’s total rent of his apartment for 1995 was
$8,260.
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