Robert Walter Allison - Page 10

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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,               
               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             

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