- 12 - In general, a taxpayer may not deduct expenses incurred with respect to the use of the taxpayer’s residence. See sec. 280A(a). Section 280A(c)(1) provides a narrow exception to the disallowance of home office deductions where the taxpayer can establish that the portion of the home to which the expenses are attributable is exclusively used on a regular basis as either the taxpayer’s principal place of business or a place of business which is used by clients or customers in meeting or dealing with the taxpayer in the normal course of business. Petitioner claimed expenses attributable to a portion of her home she contends she used exclusively as a home office. Petitioner estimated that portion at about 50 percent of her residence. Petitioner failed, however, to provide any credible evidence to support her contention that any portion of her home was used exclusively for business purposes. The only evidence regarding the use of petitioner’s home for business-related matters is petitioner’s own testimony. We find petitioner’s testimony not credible. Even if we were persuaded that some portion of the house was used exclusively for business purposes, petitioner has not offered any evidence that would support her allocation of expenses or otherwise allow the Court to reach an alternate determination under Cohan v. Commissioner, supra. Petitioner testified that her residence has two bedrooms, a kitchen, a separate eating area, one bathroom, and a living room. The portion of the house used exclusively for the business, accordingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011