- 10 - 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).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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