- 13 - development expense; indeed, the cost of any activity or undertaking, regardless of its relationship to a taxpayer’s trade or business, would be similarly deductible. The “ordinary and necessary” requirement, which is an integral part of section 162(a), is not so elastic a concept as to countenance a marginal relationship between an expense and a taxpayer’s trade or business. In view of the foregoing, we sustain respondent’s determination and hold that petitioner is not entitled to any deduction for educational expense. D. Home Office Expense Petitioner deducted $5,280 for business use of home. Petitioner claims that he used 80 percent of his one-bedroom apartment for business and that the cost of keeping up and running his apartment was $6,600. In contrast, respondent allowed a deduction in the amount of $1,588 based on a business use percentage of 25 applied against documented rent expense of $6,350. At trial, petitioner readily admitted that the 80 percent figure was an estimate. Petitioner sought to justify his estimate through such testimony as “Even the bed is being used when I’m translating” and “I have my staplers standing in the bathroom.” As a general rule, section 280A(a) provides that noPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011