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expense deduction. At trial, respondent took the position that
the $980 had been erroneously allowed; however, respondent did
not move to disallow that amount or to increase the deficiency in
taxes attributable to the $980. The record is not clear as to
the basis upon which the $980 was allowed, nor as to the basis
for respondent’s claim at trial that the allowed $980 was in
error.
For the year 1998, petitioners again determined that 20
percent of their Deepak residence constituted the home office for
the writing activity of Mr. Radnitz. However, since petitioners
agree that their residence was used only for 6 months, on their
1998 return, they only deducted expenses for one-half of that
year for Mr. Radnitz’s writing activity. For this 6-month
period, petitioners deducted $3,740 as a home office expense on
their 1998 return. In the notice of deficiency, respondent
allowed $1,503. As with regard to the 1997 year, respondent
claimed at trial that the amount allowed for 1998 was erroneous
but did not move at trial to disallow that amount or to increase
the deficiency.
Also for 1998, petitioners deducted expenses for the two
rented apartments (the North Indian Avenue and the Ravenspur
apartments), which were used by Mrs. Radnitz and Mr. Radnitz.
The North Indian Avenue apartment was used by Mr. Radnitz for 3
months during 1998 and the total expenses incurred for that time
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