- 26 -
the record, we conclude that petitioner has adequately
established entitlement to the claimed subscription expense.
11. Home Office Expenses
Petitioner claims home office deductions of $1,867 and
$1,996 for taxable years 1989 and 1990, respectively. Petitioner
alleges that because there was no office space at Great Lakes
available to him, he used space in his home as the principal
place of business for his aviation activities.
Respondent denies that petitioner’s residence constituted
the principal place of business for petitioner’s aviation
activities. Accordingly, respondent has disallowed petitioner
any deduction for home office expense.
Generally, an individual taxpayer may not deduct expenses
with respect to a dwelling unit that the taxpayer uses as a
residence during a taxable year. See sec. 280A(a). This general
rule does not apply, however, where the taxpayer uses a portion
of the residence regularly and exclusively as either: (1) The
taxpayer’s principal place of business, or (2) a place of
business which is used by clients or customers in meeting or
dealing with the taxpayer in the normal course of the taxpayer’s
business. See sec. 280A(c)(1)(A) and (B).14 Petitioner does not
allege that he met clients at his home; rather, he contends that
14 The exception provided in sec. 280A(c)(1)(C) is
inapplicable, as petitioner has not alleged that he used any
separate structure not attached to his dwelling unit.
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011