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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 no
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