Irwin and Jeannine Radnitz - Page 12




                                       - 11 -                                         


                    SEC. 280A(c).  Exceptions for Certain Business or                 
               Rental Use; Limitation on Deductions for Such Use.--                   
                           (1) Certain business use.-–Subsection (a) shall            
                    not apply to any item to the extent such item is                  
                    allocable to a portion of the dwelling unit which is              
                    exclusively used on a regular basis-–                             
                              (A) as the principal place of business for              
                           any trade or business of the taxpayer,                     
                              (B) as a place of business which is used by             
                           patients, clients, or customers in meeting or              
                           dealing with the taxpayer in the normal course             
                           of his trade or business, or                               
                              (C) in the case of a separate structure which           
                           is not attached to the dwelling unit, in                   
                           connection with the taxpayer’s trade or                    
                           business.                                                  
               In the case of an employee, the preceding sentence shall               
               apply only if the exclusive use referred to in the preceding           
               sentence is for the convenience of his employer.  For                  
               purposes of subparagraph (A), the term “principal place of             
               business” includes a place of business which is used by the            
               taxpayer for the administrative or management activities of            
               any trade or business of the taxpayer if there is no other             
               fixed location of such trade or business where the taxpayer            
               conducts substantial administrative or management activities           
               of such trade or business.                                             

          For a deduction to be allowed under section 280A(c)(1), the                 
          taxpayer must establish that a portion of the dwelling unit is              
          (1) exclusively used; (2) on a regular basis; (3) for the                   
          purposes enumerated in subparagraphs (A), (B), or (C) of section            
          280A(c)(1); and (4) if the taxpayer is an employee, the office is           
          maintained for the convenience of the employer.  Hamacher v.                
          Commissioner, 94 T.C. 348, 353-354 (1990).                                  






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011