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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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Last modified: May 25, 2011