- 18 - 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 personalPage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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