Ajuba Gaylord - Page 12

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               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, according           





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