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business of selling products at retail or wholesale, but only if
the dwelling unit is the sole fixed location of such trade or
business.” Sec. 280A(c)(2).
For 1992, petitioner deducted expenses for office rent which
respondent fully allowed. However, petitioner contends that she
is entitled to “home office” and storage expenses. We disagree.
We find petitioner’s testimony conflicting and confusing, and her
position unjustifiable. She testified that a portion of her home
was used during the time “when I first started” Dustbusters.
However, she also testified that she began Dustbusters in 1987
and utilized office space rented at 7856 West Appleton Avenue
since 1987.
The record also reflects that petitioner deducted monthly
rent paid to her mother and grandmother as alleged rental costs
for storage space. At trial, Ms. Clark testified that the $250
rent that petitioner sometimes paid was “to help out with
everything”. Petitioner also admitted that rental payments made
to her grandmother were for her personal residence, thus
nondeductible.
In this case, petitioner does not fit within the exception
of section 280A(c)(2) because she had a fixed place of business
at 7856 West Appleton Avenue during the same time period that she
is claiming deductions for home office expenses. The storage
areas in issue were located at petitioner’s various personal
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