- 17 - to such business use. Scott v. Commissioner, 84 T.C. 683, 692 (1985). Petitioners have already been allowed home office expense deductions to the extent of Mr. Radnitz’s income from residuals in both 1997 and 1998. His pension income, as respondent points out, is in the nature of deferred compensation and therefore is not considered income attributable to the use of those spaces. Estate of Sussman v. Commissioner, T.C. Memo. 1978-344 n.3 (pension income was not from taxpayer’s trade or business, but rather was “merely deferred compensation for his earlier services and * * * properly allocable to * * * [his] active employment prior to retirement”). Moreover, since petitioners rented the Vista Loma and Deepak apartments, there do not appear to be any deductions otherwise allowable with respect to them, such as mortgage interest or real property taxes. Green v. Commissioner, T.C. Memo. 1989-599 n.6. As a result, under section 280A(c)(5), petitioners are not entitled to greater home office deductions for the Vista Loma and Deepak apartments than the amounts respondent has already allowed. Petitioners raised a constitutional issue with respect to section 280A(c)(5), which the Court next addresses. Petitioners objected to the application of the income limitation of section 280A(c)(5) to them based on equal protection and fairness principles. They argued that they may never be able to deduct the expenses of Mr. Radnitz’s home office because he may notPage: 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