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materials there. She did not, however, meet with any of her
patients at the apartment. She rented separate office space in a
commercial/medical building for that purpose.
Section 162 generally allows a deduction for all ordinary
and necessary expenses paid or incurred during the taxable year
in carrying on a trade or business.2 Section 280A(a), however,
provides that deductions otherwise allowable to an individual are
generally not allowed with respect to the use of a dwelling unit
used by the individual as a residence during the taxable year.
Petitioner’s apartment, a “dwelling unit” for purposes of section
280A, was used as her residence during 1996. Sec. 280A(d),
(f)(1).
Exceptions to the general rule set forth in section 280A(a)
nevertheless permit a deduction if a portion of the residence is
“exclusively used on a regular basis” as either “the principal
place of business for any trade or business of the taxpayer,” or
“as a place of business which is used by patients * * * in
meeting or dealing with the taxpayer in the normal course of his
trade or business”. Sec. 280A(c)(1)(A) and (B). Given the size
and layout of petitioner’s apartment, we fail to see how any
portion of it could have been used “exclusively” for business
2 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for 1996, and Rule references are
to the Tax Court Rules of Practice and Procedure.
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Last modified: May 25, 2011