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the amounts claimed do not exceed the gross income limitations of
section 280A(c)(5).
By contrast, the limitations of section 280A(a) do not apply
to the rent and utilities expenses for the office space at the
North Indian Avenue apartment because that space was not used by
petitioners as a residence. Section 280A limits deductions “with
respect to the use of a dwelling unit which is used by the
taxpayer during the taxable year as a residence.” Although the
North Indian Avenue space was technically an apartment, and thus
falls within the definition of “dwelling unit” under section
280A(f), petitioners did not use the space as a residence during
1998. It was used exclusively by Mr. Radnitz in his writing
activity. Petitioners’ expenses in maintaining and furnishing
the North Indian Avenue apartment are deductible as ordinary and
necessary business expenses.
Similarly, the limitations of section 280A(a) do not apply
to the rent and utilities expenses for the office space at the
Ravenspur apartment. There is no evidence in the record that the
Ravenspur apartment was used as a residence or for any personal
purposes by either Mr. Radnitz or Mrs. Radnitz during 1998.
Petitioners were not separated from each other, and neither Mr.
Radnitz nor Mrs. Radnitz used the apartment as a place of
personal abode during this period or any other period during
1998. No other possible motives for rental of this apartment
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Last modified: May 25, 2011