- 18 - (1980); sec. 1.162-7(a), Income Tax Regs. Petitioner testified that the payments to his children were based on their needs, rather than the services they provided. Petitioner wrote a check to his wife for $3,300, dated February 6, 1994, and he testified that it was payment to Nicole for running the one-room schoolhouse and tutoring students there. He later testified that the $3,300 payment was for Nicole’s braces. Petitioner did not describe what services Brooke and Tye performed for the tax preparation activity. Petitioner has not shown that the purported wages he paid his children were for services actually rendered or were reasonable in amount. 4. Home Office Deduction Section 280A(c)(1)(A)5 allows a deduction for home office 5 Sec. 280A provides, in pertinent part: SEC. 280A. DISALLOWANCE OF CERTAIN EXPENSES IN CONNECTION WITH BUSINESS USE OF HOME, RENTAL OF VACATION HOMES, ETC. (a) General Rule.--Except as otherwise provided in this section, in the case of a taxpayer who is an individual or an S corporation, no deduction otherwise allowable under this chapter shall be allowed with respect to the use of a dwelling unit which is used by the taxpayer during the taxable year as a residence. * * * * * * * (c) Exceptions for Certain Business or Rental Use; Limitation on Deductions for Such Use.-- (1) Certain business use.--Subsection (a) shall not apply to any item to the extent such (continued...)Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011