Everett J. Diers - Page 10

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          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).                      
               Petitioner has not established that he made expenditures or            
          that he allocated the expenses between personal and business use.           
          Petitioner did not provide any evidence of expenditures for the             
          home office.  Petitioner testified that he paid $250 per week to            
          his friend to reside in her home, and she was entitled to use               
          these funds for any purpose.  However, petitioner failed to                 
          provide any substantiation beyond his testimony that the                    
          expenditures were pursuant to a trade or business.  Though                  
          petitioner claims that a portion of this weekly payment included            
          expenses associated with the home office, he provided neither any           
          receipts showing the expenditures nor any evidence to indicate              
          any allocation of expenses.  We need not examine the technical              
          requirements of section 280A(c) regarding the use of a portion of           
          a residence as a home office, because in any event petitioner has           
          failed to substantiate any home office expenses.  Accordingly,              
          petitioner is not entitled to a home office deduction under                 
          section 280A.                                                               

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