- 20 -
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.
280A(c)(1)(A).
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
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011