Michael H. Visin and Natalie Marselly - Page 8

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          legislative grace and hence a taxpayer claiming a deduction must            
          come within the express provisions of the statute).                         
               As relevant herein, section 280A(a) provides as a general              
          rule that no deduction otherwise allowable to an individual                 
          “shall be allowed with respect to the use of a dwelling unit                
          which is used by the taxpayer during the taxable year as a                  
          residence.”  The term “dwelling unit” is defined by section                 
          280A(f)(1)(A) to specifically include an apartment.  The statute            
          does not distinguish between a condominium apartment and a rental           
          apartment.  In other words, whether owned or rented, an apartment           
          is a dwelling unit within the intendment of the statute.  See               
          Horton v. Commissioner, T.C. Memo. 1997-572 (involving an artist            
          who rented premises in a commercially zoned area, which premises            
          were found by the Court to be a dwelling unit within the scope of           
          section 280A).                                                              
               The seemingly prohibitory rule of section 280A(a) is                   
          ameliorated by section 280A(c), which provides exceptions for               
          certain business uses.  As relevant herein, section 280A(c)(1)              
          provides that the general rule of section 280A(a) is not                    
          applicable to any item to the extent it:                                    
               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, [or]                       
                         (B) as a place of business which is used by                  
                    patients, clients, or customers in meeting or                     

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