Jack Chien Ching Huang - Page 9




                                        - 8 -                                         
          Discussion4                                                                 
          A.  Home Office Deduction                                                   
               Petitioner contends that he is entitled to a deduction for             
          an office in the home because his “home office” and “studio” were           
          used for business purposes.  Respondent contends that petitioner            
          is not entitled to this deduction because neither petitioner’s              
          “home office” nor his “studio” was used exclusively for business            
          purposes.  Respondent also contends that 75 South Meridith Avenue           
          was not the principal place of business for the Pasadena Chinese            
          School.5                                                                    
               Section 162(a) allows as a deduction all ordinary and                  
          necessary expenses paid or incurred during the taxable year in              
          carrying on a trade or business.  However, in the case of                   
          expenses paid or incurred in connection with the business use of            
          a home, section 280A serves to restrict the deductibility rule of           
          section 162(a).  Thus, section 280A(a) generally provides that no           
          deduction otherwise allowable shall be allowed with respect to              
          the business use of a taxpayer’s residence.                                 



          4 We decide the issues in this case without regard to the                   
          burden of proof.  Accordingly, we need not decide whether the               
          general rule of sec. 7491(a)(1) is applicable in this case.  See            
          Higbee v. Commissioner, 116 T.C. 438 (2001).                                
          5  Respondent does not contend that the principal place of                  
          business for either petitioner’s music composition business or              
          petitioner’s violin teaching business is not at 75 South Meridith           
          Avenue.                                                                     





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011