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petitioner (at least through Delta) used the Oceanside Blvd.
property during the subject years in the course of his self-
employment. Whereas respondent invites the Court to find that
the Oceanside Blvd. property was used entirely by petitioner as
his residence, the record at hand supports a contrary finding.
We conclude that the deductions which respondent has allowed as
itemized deductions are properly characterized as business
expenses to the extent that they are attributable to petitioner’s
business use of the Oceanside Blvd. property. We find in this
regard that 542 square feet of the 6.7 acres is attributable to
petitioner’s personal use and that the remainder constitutes
Delta’s business use.5 We allow petitioner to deduct as business
expenses 99.8 percent ((291,852 - 542)/291,852 = 99.8%)6 of the
Oceanside Blvd. property expenses that respondent concedes are
itemized deductions. We allow petitioner to deduct the remainder
of those expenses as itemized deductions.
As to the other expenses in dispute, i.e., depreciation,
insurance, interest (exclusive of the amounts discussed in the
immediately preceding paragraph), legal and professional
(exclusive of the $297 for 1989), repairs and maintenance, taxes
5 Although the building itself did not cover 6.7 acres,
petitioner’s personal use of the Oceanside Blvd. property was
limited solely to the apartment. We conclude, therefore, that
petitioner used the remainder of the building and the grounds
surrounding it in the course of his self-employment.
6 An acre equals 43,560 square feet. Webster’s New World
Dictionary 12 (3d coll. ed. 1988). Thus, the total square
footage of the Oceanside Blvd. property is 291,852 (6.7 x
43,560).
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