George H. Richards - Page 21

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               Deductions for expenses attributable to the taxpayer’s                 
          business use of his home are disallowed unless they fit within              
          the exceptions under section 280A.  Sec. 280A(a).  A deduction              
          may be allowed to the extent the item is allocable to a portion             
          of the home which is exclusively used on a regular basis as the             
          principal place of business for his trade or business.  Sec.                
               Deductions for expenses related to the business use of a               
          taxpayer’s home are further limited by section 280A(c)(5) to the            
          excess of the gross income derived from the use of the home                 
          office over the deductions allocable to the home office that are            
          otherwise allowable.                                                        
               As the facts indicate, during the period from January 1                
          through July 25, 1997, petitioner used a room in the marital home           
          exclusively as his work space for his drafting activity.                    
          Petitioner also used the room as such on a regular basis                    
          throughout this period.                                                     
               After petitioner moved from the marital home, he performed             
          his drafting in the kitchen of each of his subsequent apartments.           
          Because petitioner did not use a portion of each rental unit                
          exclusively for his drafting activity, petitioner is not allowed            
          a deduction after July 25, 1997.                                            
               Petitioner and respondent agreed that petitioner is allowed            
          a deduction for home mortgage interest and real estate taxes of             

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Last modified: May 25, 2011