- 14 -
5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov.
6, 1985), regarding the requisite elements to be substantiated
with respect to any listed property; sec. 1.274-5T(c),
Temporary Income Tax Regs., regarding the specific rules of
substantiation.
In view of the foregoing, we sustain respondent’s
determination and hold that petitioner is not entitled to any
deduction for rent (auto), or for travel in excess of the
amount allowed by respondent, in either 1995 or 1996.
D. Deduction for Rent (Office in the Home)
As a general rule, no deduction is allowable with respect
to the use of a dwelling unit that is used by the taxpayer
during the taxable year as a residence. See sec. 280A(a).
Pursuant to section 280A(d)(2)(A), the taxpayer shall be deemed
to have used a dwelling unit for personal purposes if the unit
is used for personal purposes by the taxpayer or by any member
of the taxpayer’s family, specifically including the taxpayer’s
children and parents. See sec. 267(c)(4). Exceptions to the
general rule of disallowance exist to the extent that a portion
of the dwelling unit is exclusively used on a regular basis as
either (1) the principal place of business for the taxpayer’s
trade or business or (2) a place of business that is used by
clients or customers in meeting or dealing with the taxpayer in
the normal course of the taxpayer’s trade or business. See
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011