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regard, petitioner admitted at trial that his employer did not
require him to maintain an office in petitioner’s home.
Accordingly, petitioner would be entitled to a home office
deduction only if he were found to have a trade or business;
i.e., were an independent contractor or self-employed. Because
we have already found that petitioner is an employee of IBC, he
is not entitled to claim a deduction for home office expenses.
E. Petitioner’s Entitlement to Certain Schedule C Deductions
On the Schedules C of their 1997 and 1998 income tax
returns, petitioners claimed various deductions. As decided
earlier in this opinion, petitioner is not self-employed and thus
is not entitled to claim deductions on a Schedule C. Respondent
also contends that petitioners are not entitled to the home
office or Schedule C deductions because of their failure to
substantiate them.5
Petitioner maintained computer records on Quicken which were
not accepted by respondent as sufficient to establish the
expenses claimed. In that regard, petitioner apparently did not
5 Because of respondent’s concession and because petitioners
were found not to be entitled to home office or Schedule C
deductions, petitioners are entitled to the following Schedule A
deductions:
Category 1997 1998 Schedule A
Home mortgage interest $7,791 $5,266 Line 10
Real property taxes 600 600 Line 6
DMV renewal fees 39 39 Line 8
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