- 9 - Section 280A(c) provides exceptions to the general rule of section 280A(a). Thus, as relevant herein, section 280A(a) does not apply to any item to the extent that such item is allocable to a portion of the dwelling unit that is exclusively used on a regular basis as the principal place of business for any trade or business of the taxpayer. See sec. 280A(c)(1)(A). Accordingly, in order to qualify under section 280A(c), a portion of petitioner’s dwelling must be exclusively used on a regular basis as the principal place of business for his trade or business. See Hamacher v. Commissioner, 94 T.C. 348, 353 (1990). Exclusive use of a portion of a taxpayer’s dwelling unit means that the taxpayer must use a specific part of the dwelling unit solely for the purpose of carrying on his trade or business. The use of a portion of the dwelling unit for both personal purposes and for the carrying on of a trade or business does not meet the exclusive use test. Gomez v. Commissioner, T.C. Memo. 1980-565. However, “The exclusive use test does not require that the portion of a room used for business must be separated physically from the rest of the room by a wall, partition, or other demarcation, but only that the absence of such a physical separation be a factor for the Court to weigh.” Williams v. Commissioner, T.C. Memo. 1991-567.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011